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Everybody is talking about cloud. Everyone is tweeting about cloud. Everyone is blogging about
cloud. Every company is claiming to be an expert in Cloud Computing. What the hell is this
Cloud Computing? To answer this question,

“Cloud Computing is all encompassing…hardware, software, storage, network, devices,
developers, testers, architects, users and everything which IT has. Nothing has changed from end
user's perspective. But a lot has changed from computing perspective. It's a paradigm shift. It's
consolidation of computing, storage and network. It's a move from CAPEX to OPEX. It's move
from owning to renting. Hence, all that was required to build a career in IT would be required to
build a career in Cloud Computing. Good administrators, good architects, good developers,
good testers, good content writers, every role will be in place".

We hope that this book provides you with enjoyable and informative introduction to the domain
of Cloud and its related technologies and their benefits to entrepreneurs, startups, small and
medium scale enterprises. We have attempted to take into account all possible cloud services
available today and how they can be utilized to achieve maximum possible benefits from it. Thus
scale new heights.

This book is an approach to make this upcoming technology / business model familiar with
masses .We tried to present this concept in more simplified and systematic way. Since starting
from basics of Cloud Computing, we have covered all commercial aspects of this technology.

Hope that you would be appreciating the same.


                            Guide to read this book
Dear readers,
This book is for entrepreneurs, as well as for business managers, consultants and MBA graduate
students who need a solid and practical understanding of how Cloud Computing works and how
it can used for business development leading to economics and financial savings. Business
managers, professionals and students alike don't have time to wade through a 600-page tome;
they need a practical guide that gets to the point directly with clear and convincing examples. Our
intention to create this guide map is to save your valuable time which is a real crisis for
intellectuals like you in this modern world.

The Part A of this book deals with basics of Cloud Computing such as definition, service models,
deployment models, its component, architect, functioning, and security concerns

The Part B talks about the businesses, the impact of Cloud Computing service models in start-
ups and existing businesses. The economics and financial saving are the two unique selling
propositions (USPs) which this section talks about and explained through the parameter like
Return on Investment (ROI) and Total Cost of Ownership (TCO). These two parameters
(ROI+TCO) are the key driving factor for Cloud Computing business model emergence.

Since our book is framed from the business development point of view and if you are acquainted
with the basics of Cloud Computing such as definition, service models, deployment models, its
component, architect, functioning, and security concerns, you can directly go to Part B.

The most unique selling proposition of Part B is to make Cloud Computing as your cup of tea.

         “There is no doubt that the Cloud Computing is business model of this decade”

Hope our approach to create this guide would be serving the intended purpose.


As rightly said, a dedicated team is behind every impossible task and same happened here. We
are not alone here to realize this concept. We are thankful for the contributions made by each
member toward its accomplishment. We are thankful to all the members of this project for their
innovative concepts, sacrifices, dedication and hard work without which this concept would
have remained a mere hypothesis.

Our special thanks to Mr.Varun Yadav for structuring the concept right from its inception.

To realize the concept on the practical grounds, a sub team of true professionals did an extensive
research on this giant and emerging subject. We are thankful to Gireesh M Deb for initial editing
of the book and idea towards the front and back cover design and content placement. Gireesh's
renovating quality played a major role in making this flawless business version of Cloud
Computing. Yashprit Singh, for editing the technical aspects of the book. His inclination
towards the green IT added a new avenue to this book along with redefining the business
economics. He was also played a major role in front and back cover design of the book. Brijesh
Singh, for reviewing the technical aspects of the book and making it more simplified and easy to

We are also thankful to Mr. Sharad J Bhosale, NarendraYadav, Mrs. Pranali Chakole, Mrs.
SupriyaYadav, Mr. Pritish R. Dash and Gyanesh Kumar for their valuable and timely

We are thankful to our friend Mr. Sandeep Bali who guided us all the way on legal issues during
the execution of this concept.

We are really thankful to Mr. Shirish Deodhar (Co -founder at InnovizeTech Software)
for making gateway for us to interact with Cloud Computing tycoons . He is also an author of the
book “From Entrepreneurs to Leaders: Building Billion Dollar Software Product


Companies from India”

We extend our sincere thanks to Mr. Santosh Dawra (Entrepreneur by profession and founder
of startup community of 3,800 entrepreneurs called the Pune Open Coffee Club (POCC)) for
providing us in-depth knowledge about the future of Cloud Computing in India.


Mr. P R Venketrama Raja-Vice Chairman, Managing Director & CEO of Ramco Systems
Limited and Mr. Suresh Sambandam, Founder & CEO, OrangeScape Technologies Limited
who supported us a lot in every aspect during this project's tenure. We would be obliging his
tremendous support and valuable feedback that became the key feature of this book.

Mr. Swapnil Dharmadhikari – Founder and Director of Splashgain Technology Solutions
Pvt. Ltd and Mr. Satish Agrawal-VP – Cloud Computing practice, e-Zest Solutions Ltd.
who were the first people realized this concept and worked on the feedback immediately.

Also, we would like to thanks all entrepreneurs (bootstrappers) who made this concept into
reality by sharing their valuable suggestions, experiences & guidance during each phase of the

All the above we are thankful to “our Parents” and “SAI BABA” .By virtue of their
grace, we accomplished this task successfully.

Pawan Yadav and Abhijit Chakole


                                Table of Contents

                                           Part - A
Chapter 1: Cloud Computing Fundamentals                                    2-47
   A.   Cloud Computing –An Overview                                       3
   B.   Cloud Computing Basic Components                                   24
   C.   Cloud Computing Architecture                                       33
   D.   How Cloud Computing Works                                          37
   E.   Application Programming Interfaces (APIs),                         39
   F.   Cloud Computing Behavior                                           42
   G.   Cloud Computing and Web 2.0                                        44

Chapter 2: Cloud Computing Service Models                                  48-68
  A.    Software as Service (SaaS) Model                                   49
  B.    Platform as Services (PaaS) Model                                  52
  C.    Infrastructure as Service (IaaS) Model                             55
  D.    Improving Service Deliveries in Cloud Computing                    63

Chapter 3: Cloud Computing Security Aspects                                69-77
    A. A Common Question in Everybody's Mind                               70
    B. Cloud Computing Concerns                                            72

                                           Part - B
Chapter 4: Cloud Computing –Business Aspects                               79-158
   I. From User Perspective                                                80-144

   Cloud Computing Tycoon Speaks:
   SatishAgarwal – VP – Cloud Computing practice at e-Zest Solutions Ltd

   A.   Cloud Computing: User Enterprise's Perspective                     83

    B. Cloud Computing in Enterprise                                               86
    C. Selecting a Cloud Computing Vendor                                          107
    D. Migrating to Cloud Computing                                                114
    E. Moving Beyond Desktop Experience                                            127
    F. Enterprise Cloud Computing Competency Areas                                 133
    G. Defining the Business Value of Cloud Computing                              135
    H. Cloud Hosting---A Knock of Cost Cutting for Start ups and SMEs              138

    II. From Business Perspective                                                  146-158
Cloud Computing Tycoon Speaks:
Swapnil Dharmadhikari – Founder and Director of Splashgain Technology Solutions Pvt. Ltd

    I.   Emergent Cloud Computing Business Models                                  151
    J.   Six Easy Ways to do Business with Cloud Computing Providers               157

Chapter 5: Cloud Computing Cost Economics for Various Businesses                   159-191

Cloud Computing Tycoon Speaks:
Mr. P R Venketrama Raja-Vice Chairman, Managing Director and CEO of Ramco Systems
    A. Commercial Roadmap for Enterprises to move into Cloud Computing              163
    B. Cost Economics Dissection of Cloud Computing at Glance                       165
    C. Cost Economics of Software as a Service (SaaS) ----A detailed analysis       169
    D. Cost Economics of Platform as a Service (PaaS) ----A detailed analysis       176
    E. Cost Economics of Infrastructure as a Service (IaaS) ----A detailed analysis 181
    F. Cloud Computing Models: Which one is best for your business?                 185

Cloud Computing Tycoon Speaks:
Mr. Suresh Sambandam Founder & CEO of OrangeScape Technologies Limited

Chapter 6: Future of Cloud Computing                                               192-213
    A. Future at Glance                                                            193
    B. 10 Reasons -Why Cloud Computing is the Wave of the Future?                  195
    C. Cloud Computing -A Green Computing – Technology of the Future               198
    D. Cloud Computing ---A Bright Future for Telecommunication Industries         209
Chapter 7:Cloud Computing in India                                                 214-219
    A.   Cloud Computing: Good opportunity for Indian IT firms                     215
    B.   Microsoft brings Azure to India                                           217
    C.   Indian Cloud Computing, services market estimated at $1 billion by 2015   218

Case Studies                                                                       220-228
Appendix A: Cloud Computing Giant Players Portfolio                                229-236
Appendix B: Cloud Computing Companies in India                                     237-240
Appendix C: Cloud Computing in Media                                               241-249
References                                                                         250-251

   Commonly Terminologies Used in This Book
 ? browser : is a software application for retrieving, presenting, and traversing
  information resources on the World Wide Web.
 ?Client : is an application or system that accesses a remote service on another computer
  system, known as a server, by way of a network.
 ?Server : In computer networking, a server is simply a program that operates as a socket
  listener The term server is also often generalized to describe a host that is deployed to
  execute one or more such programs. A server computer is a HARDWARE, or series of
  computers, that link other computers or electronic devices together. They often provide
  essential services across a network, either to private users inside a large organization or
  to public users via the internet. For example, when you enter a query in a search engine,
  the query is sent from your computer over the internet to the servers that store all the
  relevant web pages. The results are sent back by the server to your computer.
 ?Database : consists of an organized collection of data for one or more uses, typically in
  digital form. One way of classifying databases involves the type of their contents, for
  example: bibliographic, document-text, statistical.
 ?Database Server : is a computer program that provides database services to other
  computer programs or computers, as defined by the client–server model. The term may
  also refer to a computer dedicated to running such a program.
 ?Interoperability: Interoperability is concerned with the ability of systems to
  communicate. It requires that the communicated information is understood by the
  receiving system. Interoperability is not concerned with whether the communicating
  systems do anything sensible as a whole.
 ?Integration: Integration is the process of combining components or systems into an
  overall system. Integration among cloud-based components and systems can be
  complicated by issues such as multi-tenancy, federation and government regulations.
 ?Portability: Portability is the ability of moving components or systems between
  environments. In the world of cloud computing, this includes software and hardware
  environments (both physical and virtual).
 ?Service Level Agreement (SLA) : An SLA is contract between a provider and a
  consumer that specifies consumer requirements and the provider's commitment to
  them. Typically an SLA includes items such as uptime, privacy, security and backup
 ?Federation: Federation is the act of combining data or identities across multiple
  systems. Federation can be done by a cloud provider or by a cloud broker.

 ?Broker: A broker has no cloud resources of its own, but matches consumers and
  providers based on the SLA required by the consumer. The consumer has no knowledge
  that the broker does not control the resources.
 ?Multi-Tenancy: Multi-tenancy is the property of multiple systems, applications or data
  from different enterprises hosted on the same physical hardware. Multi-tenancy is
  common to most cloud-based systems.
 ?Cloud bursting: Cloud bursting is a technique used by hybrid clouds to provide
  additional resources to private clouds on an as-needed basis. If the private cloud has the
  processing power to handle its workloads, the hybrid cloud is not used. When workloads
  exceed the private cloud's capacity, the hybrid cloud automatically allocates additional
  resources to the private cloud.
 ?Policy: A policy is a general term for an operating procedure. For example, a security
  policy might specify that all requests to a particular cloud service must be encrypted.
 ?Governance: Governance refers to the controls and processes that make sure policies
  are enforced.
 ?Virtual Machine (VM): A file (typically called an image) that, when executed, looks to
  the user like an actual machine. Infrastructure as a Service is often provided as a VM
  image that can be started or stopped as needed. Changes made to the VM while it is
  running can be stored to disk to make them persistent.
 ?Virtualization: is the use of virtual machines to let multiple network subscribers
  maintain individualized desktops on a single, centrally located computer or server. The
  central machine may be at a residence, business or data center. Users may be
  geographically scattered but are all connected to the central machine by a proprietary
  local area network (LAN) or wide area network (WAN) or the Internet
 ?Meta-data: Metadata is information about other information or information systems.
  The precise meaning of the term is controversial. Though a common definition of
  metadata is that it is "data about data", in technical disciplines the term is used to
  describe data structures and systems which contain data, rather than the data itself. Thus
  it may also refer to "data about data structures" or "data about database systems".


                    Part - A


     Chapter 1:
     Cloud Computing Fundamentals

     Exploring the Unexplored
      ………. the essence of Cloud Computing


                   A. Cloud Computing -An Overview

1. Introduction

                     REGIONAL OFFICE
                                                                           HEAD OFFICE


                           REGIONAL OFFICE                 ROAMING USERS

The internet or online connectivity started out as a simple information exchange. Almost
anything that users want to learn is possible because of the internet. They just go online, make a
few searches and a minute or two, they will have the information they need. Personal
communication became a lot easier as email was developed into one of the greatest innovations
of the century.
Instead of sending mail by post which could take weeks, a single email could be read in a matter
of seconds. Even with a simple connection, exchange of information could be done – chat and
updates on new data can also be done through the internet.
Through improvement of communications infrastructure, the internet was able to move away
from the regular phone line and has a dedicated connection and much more now these days.


Dial-up connection is almost a thing of the past as more household adapt to dedicated lines with
increasing internet connection. Because of the increasing capability of the internet, developers
have looked beyond information sharing. Certain functions in desktop could now be done online.
Office documents could be uploaded and extracted or even worked on at the same time online.
Data processing is not limited anymore to your desktop as the increasing capacity of online
connectivity has made it possible to emulate or even surpass local data processing. Thus, the
cloud computing is born. In addition to above the driving factor for birth of cloud computing is
the cost.

In simpler terms, Cloud Computing is the delivery of computing as a service rather than a
product, whereby shared resources, software and information are provided to computers and
other devices as a utility (like the electricity grid) over a network (typically the Internet). A basic
definition of cloud computing is the use of the Internet for the tasks you perform on your
computer. The "cloud" represents the Internet. --Wikipedia

What Cloud Computing is (in one word) ............ BUSINESS ECONOMICS.

In broader sense, it is:
             ?   Faster, simpler and relatively cheaper to use cloud applications.
             ? upfront capital required for servers and storage.
             ? ongoing operational expenses for running data centre.
             ?   Applications and be accessed from anywhere, any time.

And we all know that over the long term, absent of other barriers, economics always win!


                                                                         HEAD OFFICE


                  REGIONAL OFFICE                        ROAMING USERS

                    Cloud Computing in our day to day life
Cloud computing can be used easily in one's personal life as well as in one's business life. It's
highly likely that you already use at least one, if not many, Cloud Computing services.
Additionally, as you explore the services we describe here, you may find that some of them may
make your life easier, or help you in promoting, managing, or operating your business. That's
what Cloud Computing is for. But before you decide to start using these services, make sure
you read the following facts

i. Social Networking
Perhaps the most famous use of Cloud Computing, which does not strike people as "Cloud
Computing" at first glance is social networking Websites, including Facebook,LinkedIn,
MySpace, Twitter, and many, many others. The main idea of social networking is to find
people you already know or people you would like to know and share your information with
them. Of course, when you share your information with these people, you're also sharing it


with the people who run the service.
While the primary purpose of social networking previously was connecting people,
businesses can use social networking too. By creating a Face book fan page, a business can
connect with its customers, and at the same time, those customers will be promoting your
business. Also, viral marketing tactics can be used in combination with social networks.
There are public relations experts who specialize in social media marketing.

ii. E-mail
Some of the biggest Cloud Computing services are Web-based e-mail. As of January 2009,
over 500 million people used Microsoft's Web-based e-mail, Hotmail or Windows Live
Mail. Using a Cloud Computing e-mail solution allows the mechanics of hosting an e-mail
server and maintaining it to be taken out of your hands. It also means that your e-mail is
accessible from anywhere.

2. Evolution -The Origin of Term
The term "Cloud" is used as a metaphor for the Internet, based on the cloud drawing used in the
past to represent the telephone network, and later to depict the Internet in computer network
diagrams as an abstraction of the underlying infrastructure it represents. Cloud Computing is a
natural evolution of the widespread adoption (Abstraction is a process by which higher
concepts are derived from the usage and classification of literal ("real" or "concrete") concepts,
first principles, or other methods. An "abstraction" (noun) is a concept that acts as super-
categorical noun for all subordinate concepts, and connects any related concepts as a group,
field, or category) of virtualization, service-oriented architecture, autonomic, and utility
computing. Details are abstracted from end-users, who no longer have need for expertise in, or
control over, the technology infrastructure "in the cloud" that supports them

Cloud traditionally depicts the internet. Since Cloud Computing is built using internet and the
resources present on World Wide Web are used to perform any kind of processing, the name
emerged as Cloud Computing. The rapid improvement of the capacity of online connectivity
gave birth to Cloud Computing. Although the term was already used since the 90s, the actual
adoption of Cloud Computing in relation to online computing started in the 21st century.

In gist, Cloud Computing is all about implementing process online instead in your local gadget.
Data and processes could be done online without the need of any local software or client. As long
as the user knows the process and have the right security credentials, he could access the system
and make the necessary changes.

The concept of Cloud Computing is not new. In fact, much of what we do on our computers
today requires it. What is changing is the way that we look at what Cloud Computing can

actually do for us today. The power and scale of the cloud has changed immensely from what it
was in the beginning. Over time as the technology and business environments had progressed,
the status- quo of Cloud Computing has changed. What was known as Cloud Computing long
ago was the same in principle, but the uses in information today have changed by an immense
The beginning of what is known as the concept of Cloud Computing can be traced back to the
mainframe days of the 1960s when the idea of “Utility Computing” was coined by MIT
computer scientist and Turing award winner John McCarthy. Utility computing ended up
becoming something of a big business for companies such as IBM. The concept was simple: that
computing power could be broken down as a metered service for businesses much like how the
power and telephone companies operated for their customers. Indeed, it was an article “The
Computers of Tomorrow” for the Atlantic Monthly in May of 1964 where author Martin
Greenberger pointed out the concept that “advanced arithmetical machines of the future”
were now being used not only institutionally for scientific calculation and research but for
business functions such as accounting and inventory. He envisioned in his piece a future in
which computers would be universal almost like the major power companies running wires
everywhere in due time. The “information utility” would soon rise, but the question was, would
it become regulated like the power industry or be a private entity in and of itself? IBM
of course, saw the potential for enormous profit to be made in this type of course,
saw the potential for enormous profit to be made in this type of invested in
had for terminal machines that would cost less than $300. These ideas were indeed profound,
but they never really took off as consumers were looking for more complete
personal computer solutions that had, for example, some storage capacity available.
The personal computer as we understand it today is no dummy terminal. In fact, the rise of the
Internet beginning in the mid-90s changed how computers could be used and how information
could be disseminated. With the idea of utility computing long gone, companies such as
Amazon began to harness the power of server farms to offer a gaggle of products to would be
In fact, despite popular belief, Amazon is far from being a company that specializes in retail. Its
contributions to Cloud Computing will be discussed later in a profile of companies using cloud
technology, but it is clear to any IT professional that Amazon is first and foremost a company
built on the foundations of technical innovation beginning especially after the dot-com bubble
Interestingly, the motives behind most dot-com companies at that time were not based on profit
but on traffic. Traffic was mistakenly seen at the time as some kind of cash flow to investors of


dot-com companies. This in turn led to a lot of investment into infrastructure.

3. Definition
Cloud Computing is a general term for anything that involves delivering hosted services over
the Internet.

“Cloud Computing is a model for enabling convenient, on-demand network access to a
shared pool of configurable computing resources (e.g., networks, servers, storage,
applications, and services) that can be rapidly provisioned and released with minimal
management effort or service provider interaction.”

The name Cloud Computing was inspired by the cloud symbol that's often used to represent
the Internet in flow charts and diagrams.

Elaborating it more, Cloud Computing refers to the provision of computational resources
on demand via a computer network, such as applications, databases, file services, email, etc.
In the traditional model of computing, both data and software are fully contained on the user's
computer; in Cloud Computing, the user's computer may contain almost no software or data
(perhaps a minimal operating system and web browser only), serving as little more than a
display terminal for processes occurring on a network of computers far away

Although Cloud Computing is an emerging field of computer science, the idea has been
around for a few years. It's called Cloud Computing because the data and applications exist
on a "Cloud" of Web servers.

Cloud Computing makes computer infrastructure and services available "On-Need" basis.
The computing infrastructure could include hard disk, development platform, database,
computing power or complete software applications. To access these resources from the
cloud vendors, organizations do not need to make any large scale capital expenditures.
Organization need to "Pay per Use" i.e. organization need to pay only as much for the
computing infrastructure as they use. The billing model of Cloud Computing is similar to the
electricity payment that we do on the basis of usage. The user need to pay only for the units of
electricity what he has used and not for the huge infrastructure like turbines, generators,
distribution in which the service provider has invested heavily. The word vendor is used for
Cloud Computing service provider and client is used for user of Cloud Computing services.
A cloud service has three distinct features that differentiate it from traditional hosting.


    ?is sold on demand, Rates are typically by the minute or the hour and it is elastic( a
     user can have as much or as little of a service as they want at any given time)
    ? service is fully managed by the vendor /provider (the consumer needs nothing
     but a personal computer and Internet access).
    ?Significant innovations in virtualization and distributed computing, as well as
     improved access to high-speed Internet and a weak economy, have accelerated interest
     in Cloud Computing.
                  Virtualization is a key enabler of Cloud Computing
Virtualization, a method of running multiple independent virtual systems on a less physical
resource, makes one computer act as many, sharing the resources of those computer hosts across
multiple environments. So instead of having a server dedicated to running just one system, a
number of virtual machines can be created on a physical machine. Each of these virtual
machines is a fully-fledged sever, running its own systems and applications.
Very often, enterprise servers operate significantly below their optimal capacity. With
virtualization technology it is possible to raise the utilization levels of existing physical servers
in order to get optimum use out of them.
Through the optimization of existing infrastructure, virtualization technology ensures
improved allocation of resources. There's no longer a need to have big machines sitting around
to service applications that only are used a portion of the time.
Virtualization is the foundation of Cloud Computing and makes the cloud function more
effectively. It's a tool that helps shape the cloud, optimizing the allocation of resources and
allowing for growth and shrinkage of the services in the cloud without having to purchase new
machines. By virtue of its ability to slice and dice the underlying services, and improve the
management and allocation of resources, virtualization enables companies and cloud services
providers to downscale their infrastructure and have a much smaller cloud while at the same
time allowing for the appropriate allocation of resources as requests come in. In short, it allows
them to achieve economies of scale.
Because virtualization makes Cloud Computing more attainable and elastic, it makes it
possible even for smaller companies to move into Cloud Computing.
Virtual Desktops – (Virtual Server) or Virtual Private Server
This is where we take a powerful server and split it up into smaller (virtual) servers, each
able to run completely separate operating system instances from one another. This allows
you to make the best use of shared hardware resources while being completely isolated from
other virtual servers on the same physical sever.

Example: Virtualization is similar to utilizing the same resources without even knowing about
it. For example, if one person lives in a house he uses the same resources as phone, heat, water,
rent, etc. Add one more person and everything remains almost the same.

                                     CASE STUDIES
Similar server crashes were reported across India during the online Common Aptitude Test
(CAT) examination conducted by prestigious Indian Institute of Management (IIM) in 2009,
although they were designed smartly to work against the virus and no to the number of hits.

Looking at the above mentioned scenario take into account the following fact
Only 28.7% of population is having the access to Internet across the globe. It is still an elite
medium of communication. But with the densely populated & developing countries like China
& India who currently have penetration lower than most of the European countries, a slightest
change in the penetration percentage can add millions of Internet users.

Then what could be the possible solution for these scenarios, and the simple answer would be -
add more number of servers. But how many servers you think would be required
…………………Any guess?

The most traffic driven website like Face book is having approximately 3000 servers and they
are continuously increasing its strength. Although the two websites mentioned are not catering
as much of the traffic as that of the Face book, Google, Twitter. With Tight budget how many
servers would be sufficient for their needs? Even if , in some of the cases these organization
may have been financially strong enough for investing bundles of money for adding more
servers but what about the load, is it same for the entire time period or fluctuating? In case of
election commission such high load may be there once for General Elections in five years. For
IIM, the high traffic is once in a year while conducting the Entrance Exam. The organization
needs to decide on weather to invest on thousand time's load which is there only for one day as
compared to normal load which is there throughout the year. Recently we have overcame
recession which may come back then such huge investment would further make such
organization vulnerable to financial slow down.

The world's largest democracy goes to its Jumbo General Elections in year 2009.The Election
Commission (EC) unrevealed the brand new website for providing the real time results.
But guess what happened?


“300,000 hits/second make Election Commission website crash”
The Election Commission website crashed under the weight of an anxious citizenry seeking
up-to-the-minute data. The National Informatics Centre, the webmasters, was prepared for
2,800 hits per second, not the 300,000 hits per second that they eventually got.”- Reports -
May18, 2009.
The National Informatics Centre (NIC) servers meant exclusively for results had crashed. NIC
had budgeted for 80.64 billion hits in eight hours on the basis of 2,800 hits per second but with
300,000 hits per second, it received 8.64 trillion hits.

What is the conclusion from above mentioned case studies ? From both the case
studies it is clear that both the agencies have the load which is occassional or seasonal.
Also the management has to analyse deeply before deciding on investing on the
infrastructure for load which is at the peak only one in a year or in five years. Since
necessity is mother of invention, New innovations and trends in IT like the Cloud
Computing offer solutions to such problems. So keep on reading, for exploring it

        Experts Opinion
According to the National Institute for Standards and Technology (NIST) “Cloud
Computing is a model for enabling convenient, on-demand network access to a pool of
configurable computing resources . . . that can be rapidly provisioned and released with
minimal management effort or service provider interaction.”
More to the point, Cloud Computing is a method of using remote servers on the Internet to do
data processing and storage. Anything from basic word processing to collaboration to e-mail to
multimedia processing can be accomplished, sometimes more efficiently, using Cloud
Computing than it could using one's personal computer. Included in Cloud Computing is
Internet-based social networking services, as these offer companies an easy method of
promoting their product or people an easy way of promoting and publicizing themselves
without building an infrastructure of their own.
l Computing is still an evolving paradigm (model).Its definitions, use cases,
underlying technologies, issues, risks, and benefits will be refined as time passes by. These
definitions, attributes, and characteristics will evolve and change over time. Cloud
Computing is Internet-based computing, whereby on demand resources, software, and
information are shared with the computers and other devices. Simply, it can be correlated to
Electrical Grid in which electricity is distributed from producer to consumer.
l "Cloud" is used as a metaphor for the Internet. It is based on the cloud drawing
The term


which was used in the past to represent the telephone network, and later to depict the Internet
in computer network diagrams. It was mainly used as an indication of the underlying
infrastructure it represents. The 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.

                          Regional Office
                                                                           Head Office


                                 Regional Office              Roaming Office

Typical Cloud Computing providers deliver common business applications online that are
accessed from another Web service or software like a Web browser, while the software and
data are stored on servers. A key element of Cloud Computing is customization and the
creation of a user-defined experience. Cloud computing is a paradigm shift following the
shift from mainframe to client–server in the early 1980s. Details are abstracted from the
users, who no longer have need for expertise in, or control over, the technology infrastructure
"in the cloud" that supports them. Cloud computing describes a new supplement,
consumption, and delivery model for IT services based on the Internet, and it typically
involves over-the-Internet provision of dynamically scalable and often virtualized resources.
It appears the form of web-based tools or applications that users can access and use through a
web browser as if it was a program installed locally on their own computer.
Cloud computing comes into focus only when you think about what IT always needs: a way to
increase capacity or add capabilities on the fly without investing in new infrastructure,


training new personnel, or licensing new software. Cloud Computing encompasses any
subscription-based or Pay-per-Use service that, in real time over the Internet, extends IT's
existing capabilities.

"The NIST definition of Cloud Computing describes five essential characteristics, three
service models and four deployment models."
4. Cloud Computing: Five Essential Characteristics
    ?Availability of large computing infrastructure on need basis : Cloud vendors
        provide appearance of infinite computing infrastructure availability. This is
        available to organizations on need basis. This ensures that organizations do not need
        to set up servers for their peak requirements. As an example consider the official
        Wimbledon site. The site gets extremely high traffic in the two weeks when the
        championship happens. For this two weeks period this site will have high server
        usage. For rest of the year the site will need to only pay for the reduced usage. In
        general organizations do not need to bear the cost of computing infrastructure for
        their peak loads. The usage of computing resources can be increased or reduced on
        need basis, is called elastic computing.
        In short
        “Rapid elasticity: IT resources are able to scale out and in quickly and on an as
        needed basis”
    ?Cloud Computing uses a "Pay-per-Use" Billing Model : Cloud billing model are
     very different when compared to traditional IT billing techniques. Typical billing
     models include per user billing, per GB billing or per-use billing (i.e. an organization
     is billed on each usage of the computing service).


    There was a time when every household, town, farm or village had its own water well.
    Today, shared public utilities give us access to clean water by simply turning on the tap;
    Cloud Computing works in a similar fashion. Just like the water from the tap in your
    kitchen, Cloud Computing services can be turned on or off quickly as needed. Like at the
    water company, there is a team of dedicated professionals making sure the service
    provided is safe and available on a 24/7 basis. Best of all, when the tap isn't on, not only
    are you saving water, but you aren't paying for resources you don't currently need.

 ?Cloud Computing typically does not involve long-term commitment
    to use the computing infrastructure. The vendor does not enforce long-term
    usage of services.

 ?Cloud Computing does not involve any significant capital expenditure for the
    organization. Unlike traditional IT infrastructure, in Cloud Computing organizations
    just use the computing services without procuring it. In some sense Cloud Computing
    involves renting the computing resources instead of buying them. As the figure below
    displays, unlike traditional computing model, Cloud Computing requires no capital
    expenditure to acquire initial computing resources.


                                        Variable Costs

                                                               Traditional IT

                                          Fixed Costs

                                        Variable Costs           Computing

? location constraint : Since the Cloud Computing vendor provides services over
    the web; these are available from any location.
? Access : Cloud Computing can be ordered online without detailed formal contracts
?Boon for Startups : Cloud Computing provides a level-playing field for smaller
 organizations. It allows smaller organization access to computing infrastructure without
 making any significant initial investment.

                      Many experts believe that Cloud Computing will lead to increased
                      commoditization of computing resources.


5. Cloud Computing Services
“Cloud Computing is not a standalone technology. It's a business and delivery model enabled by
existing technologies modified for remote, on-demand, and fractional consumption” as defined
by the national institute for standards and technologies.

Many different types of services can be delivered in the various cloud deployment environments.
Essentially, any IT resource or function can eventually be made available as a service. Although
cloud-based ecosystems allow for a wide range of service delivery models, three have become
most prominent as follows :

    ?Software-as-a-Service (SaaS)

          Applications delivered as a service to end-users typically through a Web browser.
          There are hundreds of SaaS service offerings available today, ranging from horizontal
          enterprise applications to specialized applications for specific industries, and also
          consumer applications such as Web-based email. Because the service provider hosts
          both the application and the data, the end user is free to use the service from anywhere.
          Organizations also offer enterprise-grade enabling technology to Independent
          Software Vendors (ISVs) to build their own SaaS offerings. Hundreds of ISVs have
          built their SaaS offering on top of such platforms for SaaS.

    ?Platform-as-a-Service (PaaS)

          Platform-as-a-service is defined as a set of software and product development tools
          hosted on the provider's infrastructure. It is an application development and
          deployment platform delivered as a service to developers, who use the platform to
          build, deploy and manage SaaS applications. The platform typically includes
          databases, middleware and development tools, all delivered as a service via the
          Internet. PaaS offerings are often specific to a programming language or APIs, such as
          Java or Python. A virtualized and clustered grid computing architecture is often the
          basis for PaaS offerings, because grid provides the necessary elastic scalability and
          resource pooling. Developers create applications on the provider's platform over the
          Internet., (an outgrowth of and GoogleApps are examples
          of PaaS. Developers need to know that currently, there are not standards for
          interoperability or data portability in the cloud.

    ?Infrastructure-as-a-Service (IaaS)
     Compute servers, storage, and networking hardware delivered as a service. This


      infrastructure hardware is often virtualized, so virtualization, management and
      operating system software are also part of IaaS as well. An example of IaaS is Amazon's
      Elastic Compute Cloud (EC2) and Simple Storage Service (S3). Amazon Web Services
      provides virtual server instances with unique IP addresses and blocks of storage on
      demand. Customers use the provider's application program interface (API) to start, stop,
      access and configure their virtual servers and storage. In the enterprise, cloud computing
      allows a company to pay for only as much capacity as is needed, and bring more online
      as soon as required. Because this Pay-for-what-you-use Model resembles the way
      electricity, fuel and water are consumed; it's sometimes referred to as Utility

      ? Delivery Models
      Cloud Computing is not limited to aforementioned delivery models. Security,
      governance, business process management, integration, complex event processing,
      information and data repository processing, collaborative processes - all can be
      exposed as services and consumed and utilized to create other services.
An Analogy
An On-Premise infrastructure is like having your own car. You have complete control
over when and where you want to drive it, but you are also responsible for its operation
and maintenance. IaaS is like using a car rental service. You still have control over when
and where you want to go, but you don't need to be concerned with the vehicle's
maintenance. PaaS is more comparable to public transportation. It is easier to use as you
don't need to know how to operate it and it costs less. However, you don't have control
over its operation, schedule, or routes.

Cloud Stack
The principal service models IaaS, PaaS and SaaS do relate to one another and can be arranged
as a stack. The IaaS layer represents the lowest level of the stack and is very close to the
underlying hardware. Inside the IaaS layer two types of services can be differentiated:
computational and storage. Typical representatives for infrastructure services are Amazon's
EC2 and Amazon's S3. PaaS represents the second layer in the stack. Famous examples are
Microsoft's Azure, Google's App Engine, SalesForce' and Amazon's Elastic
Beanstalk. Elastic Beanstalk is currently in beta phase and directly based on Amazon's IaaS
offerings. Upper layers such as SaaS (e.g., Google Docs) and Human as a Service (HuaaS) are
directly or indirectly based on either IaaS or PaaS. Some secondary services, such as
monitoring, accounting, authentication, metering or configuration and management are
needed on multiple levels of the stack.


                              Software as
                            a Service (SaaS)

                      Platform as a Service (PaaS)

                    Infrastructure as a Service (IaaS)

                   Cloud Computing Service Models

6. Cloud Deployment Models:

                                Cloud Computing Deployment Models


 ?Public Cloud
   A Public cloud sells services to anyone on the internet. It describes cloud computing in
   the traditional mainstream sense, whereby resources are dynamically provisioned on a
   self-service basis over the internet.
   That sells services to anyone on the Internet. (Currently, Amazon Web Services is the
   largest public cloud provider.) It is owned by an organization selling cloud services.
 ?Private Cloud
   Is a proprietary network or a data center that supplies hosted services to a limited
   number of people? When a service provider uses public cloud resources to create their
   private cloud, the result is called a virtual private cloud. It may be managed by the
   organization or a third party and may exist on premise or off premise.
 ?Community Cloud.
   The cloud infrastructure is shared by several organizations and supports a specific
   community that has shared concerns (e.g., mission, security requirements, policy, and
   compliance considerations). It may be managed by the organizations or a third party and
   may exist on premise or off premise.
 ?Hybrid Cloud.
   The cloud infrastructure is a composition of two or more clouds (private, community, or
   public) that remain unique entities but are bound together by standardized or proprietary
   technology that enables data and application portability (e.g., cloud bursting for load-
   balancing between clouds).

                 Private or Public, the goal of Cloud Computing is to provide
                 easy, scalable access to computing resources and IT services.


Comparing Public and Private Clouds
The two basic models of public and private clouds have a number of compelling business
benefits, some of which are common to both public and private, while others are only for one or
the other.
Benefits common to both Public and Private Clouds include:
High Efficiency – Because both public and private clouds are based on a grid computing and
virtualization, both offer high efficiency and high utilization due to the sharing of pooled
resources, enabling better workload balancing across multiple applications.
High Availability – Another benefit of being based on grid computing is that applications can
take advantage of a high availability architecture that minimizes or eliminates planned and
unplanned downtime, improving user service levels and business continuity.
Elastic Scalability – Grid Computing also provides public and private clouds with elastic
scalability, the ability to add and remove computing capacity on demand. This is a significant
advantage for applications with highly variable workload or unpredictable growth, or for
temporary applications.
Fast Deployment – Because both public and private clouds can provide self-service access to a
shared pool of computing resources, and because the software and hardware components are
standard, re-usable and shared, application deployment is greatly accelerated.
Some benefits are unique to Public Cloud Computing:
Low Upfront Costs – Public clouds are faster and cheaper to get started, so they provide users
with a low barrier to entry because there is no need to procure, install and configure hardware.
Economies of Scale – Large public clouds enjoy economies of scale in terms of equipment
purchasing power and management efficiencies, and some may pass a portion of the savings onto
Simpler to Manage – Public clouds do not require IT to manage and administer, update, patch,
etc. Users rely on the public cloud service provider instead of the IT department.
Operating Expense – Public clouds are paid out of the operating expense budget, often times by
the users' line of business, not the IT department. Capital expense is avoided, which can be an
advantage in some organizations.
Other benefits are unique to Private Cloud Computing:
Greater control of security, compliance and quality of service – Private clouds enable IT to
maintain control of security (data loss, privacy), compliance (data handling policies, data
retention, audit, regulations governing data location), and quality of service (since private clouds
can optimize networks in ways that public clouds do not allow).

Easier Integration – Applications running in private clouds are easier to integrate with other
in-house applications, such as identity management systems.
Lower Total Costs – Private Clouds may be cheaper over the long term c to public clouds,
since it essentially owns versus renting. According to several analyses, the breakeven period
is between two and three years.
Capital Expense and Operating Expense – Private Clouds are funded by a combination of
capital expense (with depreciation) and operating expense.
A Special Note
A Private Cloud owned and managed by the enterprise provides services with access limited
to the enterprise and its partner network and drives efficiency, standardization and best
practices while retaining greater customization and control.

A Public Cloud is service provider owned and managed providing access to services by
subscription. It delivers a select set of standardized business process, application and/or
infrastructure services on a flexible price per use basis. Of course a federated service delivery
model is feasible, allowing an enterprise to deliver its mission critical application services
through its private cloud and using the public cloud for "spillover" requirements and to run it's
less mission critical workloads.



Cloud Computing may be one on the most talked-about IT trends of recent years, but it has
yet to make much of a mark inside big business. Like many new tech trends, the hype has far
outweighed the business realities. If that is to change, then it could well be projects such as
recently undertaken by the tax division of ADP, the big US payroll processing company,
that explain why.
Extracting data from its customers' individual systems to prepare employee tax returns has
been an expensive proposition, requiring separate engineering in the case of each customer
to create the interface with ADP's own systems. As a result, it has only been economic to
sell the tax filing service to large companies, typically with more than 1,000 employees.
But inserting a computing service delivered from the "cloud" into the middle of this
process has now changed the economics of the business.
In ADP's case, the cloud service in question, from IBM, is a standardized way of "mapping"
information from client systems so that it can be "read" by ADP's own systems.ADP can now
sell the tax filing service to medium-sized companies to which it could not profitably reach
before. It has also been able to change the way it prices its service, potentially making it more
attractive. It allowed ADP to promote it as more of a standard model, rather than
charging for it as.


7. Pros and Cons of Cloud Computing


              B. Cloud Computing Basic Components

Before moving into the Cloud Computing basic components, let's clear the few ambiguities
because it is confused with some other networking models as follows
1. Autonomic Computing is an initiative started by IBM in 2001. Its ultimate aim is to develop
computer systems capable of self-management, to overcome the rapidly growing complexity of
computing systems management, and to reduce the barrier that complexity poses to further
growth. Autonomic Computing refers to the self-managing characteristics of distributed
computing resources, adapting to unpredictable changes whilst hiding intrinsic complexity to
operators and users. An autonomic system makes decisions on its own, using high-level policies;
it will constantly check and optimize its status and automatically adapt itself to changing
2. Client–Server Model of computing is a distributed application structure that partitions tasks
or workloads between the providers of a resource or service, called servers, and service
requesters, called clients. Often clients and servers communicate over a computer network on
separate hardware, but both client and server may reside in the same system. A server machine is
a host that is running one or more server programs which share their resources with clients. A
client does not share any of its resources, but requests a server's content or service function.
Clients therefore initiate communication sessions with servers which await (listen for) incoming
3. Grid Computing is a form of distributed computing and parallel computing, whereby a 'super
and virtual computer' is composed of a cluster of networked, loosely coupled computers acting
in concert to perform very large tasks. Grid Computing is a term referring to the combination of
computer resources from multiple administrative domains to reach common goal. Grid
computing is a form of distributed computing whereby resources of many computers in a
network are used at the same time, to solve a single problem. Grid systems are designed for
collaborative sharing of resources. It can also be thought of as distributed and large-scale cluster
computing Grid is making big contributions to scientific research, helping scientists around the
world to analyze and store massive amounts of data by sharing computing resources.
4. Mainframe Computer are powerful computers used mainly by large organizations for
critical applications, typically bulk data processing such as census, industry and consumer
statistics, enterprise resource planning, and financial transaction processing.
5. Utility Computing is the packaging of computing resources, such as computation and
storage, as a metered service similar to a traditional public utility, such as electricity. Utility
Computing relates to the business model in which application infrastructure resources —

hardware and/or software — are delivered. While Cloud Computing relates to the way we
design, build, deploy and run applications that operate in an virtualized environment, sharing
resources and boasting the ability to dynamically grow, shrink and self-heal.
6. Peer-to-Peer a distributed architecture without the need for central coordination, with
participants being at the same time both suppliers and consumers of resources (in contrast to the
traditional client–server model).
7. Virtual Computing issued of software systems that act as if they were hardware
systems(virtual machine, virtual memory, virtual disk), of computer-generated simulations of
reality (virtual reality), and of internet gaming environments wherein entire worlds are created
(virtual world) or the real world is supplemented with virtual images (augmented
reality).Virtualization is the creation of a virtual (rather than actual) version of something, such
as an operating system, a server, a storage device or network resources. Virtualization is a
computing technology that enables a single user to access multiple physical devices. This
paradigm manifests itself as a single computer controlling multiple machines, or one operating
system utilizing multiple computers to analyze a database. Virtualization is about creating an
information technology infrastructure that leverages networking and shared physical IT assets
to reduce or eliminate the need for physical computing devices dedicated to specialized tasks or
8. Cloud Computing is a style of computing in which dynamically scalable and often
virtualized resources are provided as a service over the Internet. Through Cloud Computing, a
world-class data center service and collocation provider offers managed IT services through a
hosted or "Software as a Service (SaaS)" model. A server or database can be physically located in
a highly-secure, remote location while the data is accessed from a client's computer, using the
database's server to retrieve, sort, and analyze the data. This arrangement eliminates the need for
a costly in-house IT department and hardware and the associated capital expense. Instead, a
Cloud Computing provider owns the hardware while providing hosted, managed services to its
clients on a usage basis. Cloud Computing generally utilizes virtualized IT resources such as
networks, servers, and computing devices.
Now, lets go through the basic components of Cloud Computing
Cloud Computing: The Basic Components
Successful implementation of Cloud Computing requires proper implementation of certain
components. Without any of these components, Cloud Computing will not be possible. These
components can't be easily implemented by one person alone.
Cloud Computing will require persons with different expertise, experiences and backgrounds.
As it will require more people in the industry, it's no wonder why Cloud Computing is a very
expensive venture. But even with the expenses that the company would often have to spend, the


advantages provided by Cloud Computing are far more than the initial spending.
Some would resort to a Cloud Computing vendor because of the lack of resources while others
have the resources to build their Cloud Computing applications, platforms and hardware. But
either way, components have to be implemented with the expectation of optimal performance.
? Client – The end user
Everything ends with the client. The hardware components, the application and everything else
developed for Cloud Computing will be used in the client. Without the client, nothing will be
The client could come in two forms: the hardware component or the combination of software and
hardware components. Although it's a common conception that Cloud Computing solely relies
on the cloud (internet), there are certain systems that requires pre-installed applications to ensure
smooth transition. The hardware on the other hand will be the platform where everything has to
be launched.
Optimization is based on two fronts: the local hardware capacity and the software security.
Through optimized hardware with security, the application will launch seamlessly.
?Service – The functions in Cloud Computing
Cloud Computing always has a purpose. One of the main reasons Cloud Computing become
popular is due to the adoption of businesses as the easier way to implement business processes.
Cloud Computing is all about processes and the services launched through Cloud Computing
always has to deal with processes with an expected output.

The optimization on services is based on two things: the proper development of the application
and the end user. Sometimes, the service could be used by the user wherein their experience is
greatly affected by their gadget.

To date there are a ton of services out there on the Internet for users to take advantage of. Some of
them are quite unique, while others enhance services that were already available.

One of the most popular services that uses Cloud Computing is mapping services. A few
examples include Yahoo Maps, Google Maps, and Map request. These services require a lot of
database storage. They also need a lot of processing power to perform tasks such as giving people
accurate directions.

Payment services also require many back-office tasks. These payment processors require a lot of
processing power to accurately complete the accounting required for deposits and withdrawals.
Two of the most popular payment services include Paypal and Google Checkout.

Customized search functions require cloud technology to work. That is why search services are

out there to help people find what they need. This technology also requires a lot of computing
power. Services such as Google Custom Search and Alexa, or even utilize massive
server farms to keep their pages properly indexed.

? Application – Backbone of the Service
The service often comes through as an application. It is through the application that the service is
realized. This is where software developers have to focus in terms of ensuring the application
will work as expected.
Optimization of the application is based the actual coding of developers. Through extensive
testing on load handling, security and functionality, the application could work as expected.
The application itself, which is the component that end users will spend most of their time using,
is hosted on severs that are remote from the user and can be run in real time from a thin client that
hosts the application through a web browser. The majority of applications that are hosted on
clouds are run via browsers.
This has major benefits in that there is no installation of the application, no maintenance
required, and support issues are streamlined because the software is hosted on a machine that is
dedicated to that software, so there is no worry of external influences of the thin client on the
software itself.
Cloud applications are also referred to as software as a service (SaaS), software plus service or
data as a service.
?Platform – “Soft infrastructure” for the Application
In regular websites or applications that don't deal with Cloud Computing, the application is
directly connected to the server. In Cloud Computing, the application is still launched to another
application called the platform.
The Storage – The Warehouse of Cloud Computing
Everything that the application knows and the functions that could be provided by service are
possible through storage. The storage holds pertinent data and information on function on how
they will be implemented.
Optimization on storage is based on how the storage facility protected from different attacks and
availability of back-up. Cloud Computing is always about consistency and availability of
service which will naturally require the storage to be available all the time.
Physical storage can be expensive for companies looking to expand their storage needs. It is
more economical to go with the cloud to be able to expand and collapse as the business dictates.
One of the biggest features of Cloud Computing is storage.
In hardware terms, storage devices are the often first to fail on a computer. By using cloud
technology, companies can rest assured that their data is safe. Cloud vendors will provide
service level agreements to let their customers know that their data is safe.
Server farms and Cloud Computing offer a great way to keep data safe in case there is an

emergency situation. Because there are so many computers in the cloud environment, the
chances of complete failure of all systems is very slim. In this way, cloud vendors are able to
entice customers with incentives of protecting their data from harm.
Companies offering database storage services in the cloud include Amazon's SimpleDB and
Google App Engine's Bigtable data storage service. Microsoft offers an online synchronization
service called Live Mesh, which is part of the Live Desktop service that they are now offering.
Regular storage services include Amazon's Simple Storage Service.

?Infrastructure – The Backbone of Cloud Computing
Every function, service and the ability of storage to provide the needed data is only possible
through optimized infrastructure. This could be considered as the platform behind the storage as
the infrastructure helps the storage deal with load problems.


The infrastructure is a platform wherein it weights the ability of the storage against the number of
requests. The infrastructure has the ability to make some changes by load balancing and even

The infrastructure of cloud computing is comprised of computer hardware and the buildings that
contain that hardware

        Load Balancing is key to successful Cloud-Based (dynamic)


In networking, Load Balancing is a technique to distribute workload evenly across two or more
computers, network links, CPUs, hard drives, or other resources, in order to get optimal resource
utilization, maximize throughput, minimize response time, and avoid overload. Load balancing
is especially important for networks where it's difficult to predict the number of requests that
will be issued to a server. Busy Web sites typically employ two or more Web servers in a load
balancing scheme. If one server starts to get swamped, requests are forwarded to another server
with more capacity. Using multiple components with load balancing, instead of a single
component, may increase reliability through redundancy. The load balancing service is usually
provided by a dedicated program or hardware device (such as a multilayer switch or a DNS
But architecting a cloud-based environment requires more than just deploying virtual images
and walking away. Cloud-based computing is going to require that architects broaden their
understanding of the role that infrastructure like load balancers play in enterprise architecture
because they are a key component to a successful cloud-based implementation, whether that's a
small proof of concept or a complex, enterprise-wide architectural revolution.
The goal of a cloud-based architecture is to provide some form of elasticity, the ability to expand
and contract capacity on-demand. The implication is that at some point additional instances of
an application will be needed in order for the architecture to scale and meet demand. That means
there needs to be some mechanism in place to balance requests between two or more instances of
that application. The mechanism most likely to be successful in performing such a task is a load
The challenges of attempting to build such architecture without a load balancer are staggering.
There's no other good way to take advantage of additional capacity introduced by multiple
instances of an application that's also efficient in terms of configuration and deployment. All
other methods require modifications and changes to multiple network devices in order to
properly distribute requests across multiple instances of an application. Likewise, when the
additional instances of that application are de-provisioned, the changes to the network
configuration need to be reversed.
Obviously, a manual process would be time consuming and inefficient, effectively erasing the
benefits gained by introducing a cloud-based architecture in the first place.


A Load Balancer provides the means by which instances of applications can be provisioned and
de-provisioned automatically, without requiring changes to the network or its configuration. It
automatically handles the increases and decreases in capacity and adapts its distribution
decisions based on the capacity available at the time a request is made.
Because the end-user is always directed to a virtual server, or IP address, on the load balancer the
increase or decrease of capacity provided by the provisioning and de-provisioning of application
instances is non-disruptive. As is required by even the most basic of Cloud Computing
definitions, the end user is abstracted by the load balancer from the actual implementation and
needs not care about the actual implementation. The load balancer makes one, two, or two-
hundred resources - whether physical or virtual - appear to be one resource; this decouples the
user from the physical implementation of the application and allows the internal implementation
to grow, to shrink, and to change without any obvious affect on the user.
Choosing the right Load Balancer at the beginning of such an initiative is imperative to the
success of more complex implementations later. The right load balancer will be able to provide
the basics required to lay the foundation for more advanced Cloud Computing architectures in
the future, while supporting even the most basic architectures today.
The right load balancer will be extensible.
When first implementing a Cloud-Based architecture you need simple load balancing
capabilities, and little more. But as your environment grows more complex there will likely
be a need for more advanced features, like layer 7 switching, acceleration, optimization,
SSL termination and redirection, application security, and secure access. The right load
balancing solution will allow you to start with the basics but be able to easily provide more
advanced functionality as you need it - without requiring new devices or solutions that
often require re-architecture of the network or application infrastructure.

  Note : A load balancer is a key component to building out any Cloud Computing
  architecture, whether it's just a simple proof of concept or an advanced, provider-oriented
  These are the components for Cloud Computing. Each of these components have to be
  optimized for a secured and well functioning application for Cloud Computing.


                           C. Cloud Computing Architecture
When talking about a Cloud Computing system, it's helpful to divide it into two sections: the
front end and the back end. They connect to each other through a network, usually the Internet.
The front end is the side the computer user, or client, sees. The back end is the "cloud" section of
the system.
The front end includes the client's computer (or computer network) and the application
required to access the Cloud Computing system. Not all Cloud Computing systems have the
same user interface. Services like Web-based e-mail programs leverage existing Web browsers
like Internet Explorer or Firefox. Other systems have unique applications that provide network
access to clients like Bookganga's e-book reader application.
On the back end of the system are the various computers, servers and data storage systems that
create the "Cloud" of computing services. In theory, a Cloud Computing system could include
practically any computer program you can imagine, from data processing to video games.
Usually, each application will have its own dedicated server.

        User Information             System     Provisioning
           Interface               Management      Tools              Server

                            Service             Monitoring &
                           Catalogue              Meeting

                                 Diagram of Cloud Computing Architecture

A Central Server Administers the system, monitoring traffic and client demands to ensure
everything runs smoothly. It follows a set of rules called Protocols and uses a special kind of
software called Middleware. Middleware allows networked computers to communicate with
each other. Middleware sits "in the middle" between application software that may be working
on different operating systems.
If a Cloud Computing company has a lot of clients, there's likely to be a high demand for a lot of

storage space. Some companies require hundreds of digital storage devices. Cloud Computing
systems need at least twice the number of storage devices it requires to keep all its clients'
information stored. That's because these devices, like all computers, occasionally break down. A
Cloud Computing system must make a copy of all its clients' information and store it on other
devices. The copies enable the central server to access backup machines to retrieve data that
otherwise would be unreachable. Making copies of data as a backup is called redundancy.
The architecture behind Cloud Computing is a massive network of "Cloud Servers"
interconnected as if in a grid running in parallel, sometimes using the technique of virtualization
to maximize computing power per server.
A front-end interface allows a user to select a service from a catalog. This request gets passed to
the system management which finds the correct resources, and then calls the provisioning
services which carves out resources in the cloud. The provisioning service may deploy the
requested stack or web application as well.
    ? Interaction Interface: This is how users of the cloud interface with the cloud to
     request services.
    ?Services Catalog: This is the list of services that a user can request.
    ?System Management: This is the piece which manages the computer resources
    ?Provisioning Tool: This tool carves out the systems from the cloud to deliver on the
     requested service. It may also deploy the required images.
    ?Monitoring and Metering: This optional piece tracks the usage of the cloud so the
     resources used can be attributed to a certain user.
    ?Servers: The servers are managed by the system management tool. They can be either
     virtual or real.
The success of Cloud Computing is largely based on the effective implementation of its
architecture. In Cloud Computing, architecture is not just based on how the application will work
with the intended users. Cloud Computing requires an intricate interaction with the hardware
which is very essential to ensure uptime of the application.
These two components (hardware and application) have to work together seamlessly or else
Cloud Computing will not be possible. If the application fails, the hardware will not be able to
push the data and implement certain processes.
On the other hand, hardware failure will mean stoppage of operations. For that reason,
precaution has to be done so that these components will be working as expected and necessary
fixes has to be implemented immediately for prevention as well as quick resolution.


Data Centers
One of the most distinguishing characteristics of Cloud Computing architecture is its close
dependency on the hardware components. An online application is just a simple application that
could be launched in different servers but when the application is considered with Cloud
Computing, it will require massive data centers that will ensure the processes are done as
expected and timely.
Data centers for Cloud Computing architecture are not your run-of-the-mill data processing
centers. It's composed of different servers with optimal storage capacity and processing speed.
They work together to ensure that the application will be operating as expected. The area is
usually in a highly controlled environment where it would be constantly monitored through
various applications and manually checked.
The data center could be considered as the backbone of Cloud Computing architecture. The
destruction of it could easily mean millions of dollars in additional spending for companies. For
that reason, data centers of large companies are often kept secret to avoid infiltration either by
hacking or actual physical damage.
Applications in Cloud Computing architecture
Enabling the capacity of the data centers is the software that does the processing. With the help of
the data centers, the processing time will be fast as the speed of transaction will be suggested by
the hardware capabilities of the data center.
The application in Cloud Computing will call on the assistance of the hardware not only in
processing but also in data gathering. Although it would be possible that data will come from
another source, data centers will usually house the data in their server farms for faster access and
easier processing.
The challenge for applications in Cloud Computing is largely based on the number of requests
the application could handle. Although this factor could be highly suggested by the data center,
the application will usually have a threshold if they are not properly written.
To deal with this concern, developers use metadata to enable personalized services to their users
as well as data processing. Through metadata, individualized requests will be entertained and
will be properly implemented. Metadata also ensures uptime of transaction as data requests will
be slowed down if the developer chooses to do so.

The UNIX philosophy
Although there are many definitions, rules and principles for Unix Philosophy, they all point out
to one belief: build one thing and make sure it works consistently.


Cloud Computing Architecture and its implementation is strongly defined by the Unix
Philosophy. It's basically a set of rules and principles that developers would have to follow to
ensure that Cloud Computing would be easily implemented and the application would be for the
advantage of the user.
Developers who design the architecture for Cloud Computing have to remember that they are
there only to support only one application or at least an output. Cloud Computing could be
composed of different stages but these stages are geared towards the consistent computing of the
online application.
Keeping up with the demands of the application is the data centers and server farms. It could be
said that too much hardware could be used to support a single process but these are implemented
to ensure that the application would have as many back-up plans as it could have.
Applications from Cloud Computing is also implemented with the thought of consistent security
and performance monitoring. Through proper implementation of Cloud Computing
Architecture, the application will be accessible 24/7 with a new 100% uptime for their users.


                     D. How Cloud Computing Works
Let's say you're an executive at a large corporation. Your particular responsibilities include
making sure that all of your employees have the right hardware and software they need to do
their jobs. Buying computers for everyone isn't enough -- you also have to purchase software or
software licenses to give employees the tools they require. Whenever you have a new hire, you
have to buy more software or make sure your current software license allows another user. It's so
stressful that you find it difficult to go to sleep on your huge pile of money every night.

                                      A typical cloud computing system

Soon, there may be an alternative for executives like you. Instead of installing a suite of software
for each computer, you'd only have to load one application. That application would allow
workers to log into a Web-based service which hosts all the programs the user would need for his
or her job. Remote machines owned by another company would run everything from e-mail to
word processing to complex data analysis programs. It's called Cloud Computing, and it could
change the entire computer industry.
In a Cloud Computing system, there's a significant workload shift. Local computers no longer
have to do all the heavy lifting when it comes to running applications. The network of computers
that make up the cloud handles them instead. Hardware and software demands on the user's side
decrease. The only thing the user's computer needs to be able to run is the Cloud Computing
system's Interface Software, which can be as simple as a Web browser, and the cloud's
network takes care of the rest.
Cloud Computing works much like standard computing from the user's viewpoint. The user
submits a request, like opening or saving a document or contacting another user. The request is
sent to the "Cloud," which then processes the request and returns the result to the user. The
purpose is to make the cloud transparent to the user.
Usually, the user is using a particular program like Citrix XenApp or, more commonly, simply
a Web browser like Internet Explorer, Firefox, or Google Chrome. The user will visit a
particular Website and log in to the system. The requests are sent to what is called the back-end
or Cloud. There, it is received a server which, in the above diagram to the left, is called the
Control Node. It is responsible for distributing the load between different servers so that no
one server is overloaded and the service stays fast. (You didn't think that Google ran on one big
computer in Mountain View, California, did you?) It may also request data, like data for
authentication of the user. After having a request passed to a particular server, the server
processes the request and returns the result, if there is one, to the user. The users front-end may
directly communicate with the particular server or each new request may be routed to a new
server. Often, the connection to the application server is kept open so that if there are any new
developments (for example, if you receive an e-mail message in Gmail), you can be notified
and your display updated.

                                     A Common Example

There's a good chance you've already used some form of Cloud Computing. If you have an
e-mail account with a Web-based e-mail service like Hotmail, Yahoo! Mail or Gmail, then
you've had some experience with Cloud Computing. Instead of running an e-mail program on
your computer, you log in to a Web e-mail account remotely. The software and storage for your
account doesn't exist on your computer -- it's on the service's computer cloud.


        E. Application Programming Interfaces (APIs)
                          “Without API's, there is No Cloud Computing”

An Application Programming Interface (API) is a particular set of rules ('code') and
specifications that software programs can follow to communicate with each other. It serves as an
interface between different software programs and facilitates their interaction, similar to the way
the user interface facilitates interaction between humans and computers.

In short, API's are resource allocator software, manages dynamic requirement of client.
Cloud Computing is not simply another type of application service provider (ASP) offering
within a walled garden. These services were tied to specific hardware and software

In contrast, Cloud Computing draws its strength from its connections to the outside world,
through APIs. These APIs fall into three general categories:

    l Control APIs, which allow cloud infrastructure to be added, reconfigured, or removed
      in real time, either by human control or programmatically based on traffic, outages, or
      other factors.
    l Data APIs, which are the conduits through which data flow in and out of the cloud.

    l   Application Functionality APIs, which enable the functionality those end users,
        interact with, such as shopping carts, wikis, and widgets.

Let's understand about each of the category

1. Control APIs: The key to Cloud Computing flexibility
Nearly all cloud services allow (or even require) deployment and configuration through APIs.
When you use Amazon's EC2 service, you are using the EC2 API to dynamically configure
virtual servers. When you use Google's App Engine, you are using an API to run your web
applications on Google's infrastructure. These control APIs are integral to the capabilities of all
Cloud Computing Providers, performing functions similar to those of a conventional data center
dashboard. In fact, some observers believe a significant reason for the failure of Sun's cloud (which has been taken down) is that it could not be controlled through APIs
and therefore lacked the flexibility that developers expect from cloud services.

At first, controls APIs were limited to individual cloud providers, but that is starting to change.


GoGrid has made its Mashery-powered control API available under a Creative Commons Share
Alike license, so that other cloud providers can use and modify it to suit their needs.

2. Data APIs: Essential conduits for all Cloud-Based Applications
This is an exciting development, but the real magic in Cloud Computing happens when data
interchange APIs move between clouds. The web itself provides the underlying infrastructure,
while applications, data, and services are delivered via interconnected clouds.

We are now starting to see some of the benefits of cross-cloud applications. For example,
Lasso2Go, an impressive contact information service, makes use of Amazon and's clouds, as well as the APIs for the iPhone and other devices. The Amazon data
interchange APIs have been merged with other data interchange APIs, enabling a seamlessly
integrated cross-cloud application.

In a completely different market, soundpushr demonstrates the power of APIs. Using APIs from
Amazon, Flickr, the Hype Machine,, and YouTube, soundpushr gives music enthusiasts
the ability to search for and instantly find music, videos, and photos of artists they like. The
search tool does not use bots to crawl the web. Instead, it connects directly to data sources in the
Amazon and YouTube clouds, as well as ones at Flickr, the Hype Machine, and

3. Application Functionality APIs : The Final layer
Application Platform APIs provide functionality beyond data access. For example, they give
Ning the ability to provision configurable social networking sites from an array of centralized
services. But application platform APIs can do more. The social shopping site Kaboodle
leverages the API to provide product information, and then adds its own social
networking features. The possibilities for application functionality integration are already being
explored, and as more APIs become available, we can expect even more exciting combinations.

                                     A Thrilling Future !
 In the recent past, we have seen an amazing transition in Web 2.0. Organizations ranging from
 retail giants like Best Buy to content providers like the New York Times to service providers
 like Netflix to powerful institutions like the World Bank are opening their content and services
 to developers and partners. We are witnessing a revolution. Content and services that were
 previously trapped in systems that required great effort to get pushed out to the web are now
 part of a much larger set of connected Cloud Eco-systems. Information, functionality, and
 services can now be delivered at the point and time that users want it. And APIs are the
 foundation that makes this all possible.

                                      Features of API
  ?Launch and control Cloud Servers programmatically.
  ?Customize server instances with the ability to dynamically inject files into the file system.
  ?Assign server instances custom metadata using your own key/value pairs.
  ?Reboot servers with soft or hard (power cycle) restart options.
  ?Rebuild servers from any image you specify.
  ?Create custom images and schedule backups of your Cloud Servers.
  ?Resize servers up or down, choosing from a variety of configurations.
  ?Share IPs. Create a collection of servers that can share public IPs with other members of
   the group.


                       F. Cloud Computing Behavior
The behavior of Cloud Computing is highly dynamic wherein the only way the process would be
possible is through proper interaction of the application and hardware. If one of the components
in Cloud Computing will not work or at least will execute below par, Cloud Computing will
never work. Developers and business managers have to make sure everything is according to
plan which will never falter in any occasion. Certain support measures have to be implemented to
prevent any form of downtime. Infrastructure and extensive monitoring is usually a requirement
to properly implement Cloud Computing and stay true to its behavior.

1. From Desktop to Browser
One of the best characteristics of Cloud Computing is its ability to remove the need of desktop or
local applications. Everything could be extracted online and everything could be performed in a
secured environment through browser.

Obviously, Cloud Computing is all about doing everything online. This means Cloud
Computing will require different factors should be working together. Aside from these factors,
they should be working consistently to ensure continuous business operation.

2. Ability to be Dynamic
Getting the application, data and proper process in the cloud is not just getting the data available
in the server and could be extracted by request. The processing power of data center and
application should have dynamism that should be observed at all times. Dynamism in Cloud
Computing is the ability to redistribute the processing power of the cloud at will. If there are few
users who tries to use the cloud, the resources of the cloud should be distributed on those number
of users. At the same time, Cloud Computing should be redistributed when the number of users
will increase.

3. Distribution of Resources
Aside from the ability to adapt to the number of users and data requests, Cloud Computing
should have the ability to work with different form of resources. Most well known service
providers do not rely their operations in one service center alone. They would usually come with
two or more server farms – infrastructure with multiple and massive servers.
These are not done just to store large amount of data, multiple server farms in different areas are
redistributed in locations so that they could provide ample support to other data centers. If one
server farm will go down, other server farms will take over the load temporarily.

4. Operations as Abstraction
Cloud Computing is never a simple concept. Each application that will run in the server and


would eventually become online will require different set-up. This is essential in abstraction
which will enable the application to be highly dynamic as well as adaptable. Abstraction should
be observed as behavior in Cloud Computing as this will provide the needed operations for Cloud
Computing. Through abstraction, the application should be adaptable enough to different
scenarios. This is useful especially for businesses that requests adaptable processes.

5. Application Development
The only way the application in Cloud Computing should be launched is through a local platform.
By using a local platform such as browser, the local gadget will only require minimal application
to be launched. One classic example is the browser wherein online applications could be easily

This is very challenging for developers since launching the application online will require greater
adaptability. Browser incompatibility is one of the biggest challenges a developer face. Internet
Explorer, Firefox, Opera, Safari and other major browsers have different implementation to
different functions. This means developers must have the ability to implement certain application
in a specific browser.

6. Physical Requirements
Getting everything done online requires powerful hardware capabilities. As already indicated,
the online application in Cloud Computing requires different type of data center. Everything will
be for nothing if the application will not have powerful support.

The physical requirement is actually the most challenging part in Cloud Computing. The physical
requirement will need considerable amount of spending just to make sure everything will work
seamlessly. Once everything has been set-up, additional support for software as well as hardware
components should be there. The security of these components is always a requirement for
disaster prevention and optimum performance.


        G. Cloud Computing and Web 2.0
Cloud Computing has been the byword for different businesses today. This is a type of process
that relies o the internet or online connectivity for different data processing instead of using the
local gadget. The internet has come a long way of providing different types of services to users.
Years ago, the internet is just used merely for information gathering and email. Today, the
internet could become a host of different types of applications which will not require any local
installation in the users end.
Cloud Computing promises portability as users would just have to need a strong internet
connection to ensure the process is done. Cloud Computing could even emulate the desktop
Cloud Computing is usually focused on the enterprise. As businesses today require more
collaboration in real time without any geographical consideration, Cloud Computing became a
viable option as this will provide real time interaction in business process. It offers the portability
to different users without having to constantly require the local gadget for certain installations.

1. Considering Web 2.0
The term “Web 2.0” on the other hand, have been used for many years long before Cloud
Computing became popular in the software development industry. But instead of defining Web
2.0 about the components it requires, Web 2.0 is more about the interaction the user will receive.

In Web 2.0, the focus of different online applications is the user wherein they are given the
freedom to connect and make some changes on their online environment. Web 2.0 is more about
the interaction between users.

Classic examples of Web 2.0 are the different online social networking websites. Users of these
websites will be able to connect to one another while trying to make some changes in their online
environment depending on their preferences.

Although Web 2.0 will still require hardware support, its focus is more on the actual interaction
of the online application with the user. The application seen in different Web 2.0 websites are
always geared towards the user's need to do something about their experience online.


2. Confusion on Cloud Computing and Web 2.0
Based on the previous definitions on Cloud Computing and Web 2.0, it's no wonder that
confusion over the right term exists. An application could be called an application for Web 2.0
but could never be called an application fit for Cloud Computing. On the other hand, an
application could be regarded as an application with Cloud Computing and a Web 2.0
application at the same time. The reason application could become an application for Cloud
Computing and Web 2.0 is in its purpose and building philosophy.

Cloud Computing is built with the intention of developing an online application that could be
supported anytime, anywhere with enough security for its users. The application built with
Cloud Computing could be almost anything – including Web 2.0 websites.

There is also an idea that Cloud Computing is the next step for Web 2.0. This idea could be right.
After all, Web 2.0 is just based on the actual experience of the user online while Cloud
Computing takes it a bit further by making everything – including the user experience, online.
But that doesn't mean that the term Web 2.0 will be gone in a few years time. The term still
designates the actual user experience and the term might forever stay.

3. Common Problem: Security
But even though with the confusion on terms and how the application will be tagged eventually,
the problem the applications from Cloud Computing and Web 2.0 is the same: Security.
The challenge for Web 2.0 in terms of security is from the fact that the online application is not
only based on what the user would experience but others as well. Anyone could easily interact
with one another with or without any permission. Because of the Web 2.0's openness to
everyone, anyone could initiate an attack to the user or even the application itself.
 The security problem in Cloud Computing is based on the fact that the application will not be
launched in a local network but online. That means they are open to anyone who have an idea
about the application. Without security measures, Cloud Computing application is a sitting duck
for hackers. Cloud Computing or Web 2.0, developers have to make sure that they build a secured
website for their users.

                               "A MYTH" OR "A FACT"
 99% of what people mention as “Cloud Computing” is nothing more than Web 2.0, which is
 not anything more than crunching normal data and putting it online in a simple website.
 Just about anything people claim is “cloud” based already existed on the web long before this
 buzzword came up. Spotify “Puts music in the cloud”, never mind that they do the same thing
 that has done for 6 years, never mind that all does is stream music to you which
 RealPlayer has done since the late 90's, never mind that Real player is just using the UDP
 portion of the TCP protocol that has been around since the 70's.
 So what we have is files stored on remote servers that are sent to a user? What a novel idea!
 What do you think WebPages are?
 Even Web 2.0 was a better buzzword because at least then companies were taking massive
 user input, crunching the data on their servers and feeding it back to the users, it was a process
 of making better use of the web, but even then it wasn't a magic new technology.
 The other use of “Cloud Computing” as a term is really just describing “Server Virtualization”
 at a datacenter, something that has been done for quite a while now. Instead of buying your
 own server, and renting out rack space at a datacenter, the data center is renting virtual server
 out to you with virtual storage and virtual processing for you to put your code on. The code
 and the service you provide to your customers is the same as it's always been. The only
 difference is that you don't own the equipment the code sits on anymore.

       Cloud Computing is a Business Model, NOT a Technology
It's like switching from 5×8 workdays to 4×10 workdays. Your company may get some
efficiency benefit but it doesn't change the fact that people working are still working the same
job they did before. Reading through the comments on Tech Crunch we realized that most
people still don't know what “Cloud Computing” is. Simply put it's just crunching some data
and putting it online for users to look at (or what people were calling Web2.0 a few years ago).

Now that many people are surfing the net through i-Phones and other smart phones they want
to do things that are beyond the scope of the tiny piece of handheld software and that heavy
lifting is being done on the backend. But it's nothing new, it's how Google Maps works, it's the
way search engines work, it's the way anything that stream audio or video works. It may be
more prevalent now but it's not new.
And it's not 100% online like most people think; it still relies on your browser and the java and
flash (siverlight, air) plug-in to do the front end computing for you. The only functions
handled on the backend are the simplest database functions and data storage.
Take something like Mint. Financial reports are just basic excel style spreadsheets made
pretty for you with some graphs. You can make your own by importing bank data to excel,
uploading it to a public access FTP and getting a copy from any remote site you access from.
It's all existing, not to mention old, technology and ideas. It just took Mint to make a business
plan to organize it all for you so all you had to do was look at a pretty website. No new “cloud”
technology was invented or used in the process, just re-appropriating old technology in a new
Hence “Cloud Computing” isn't a new Technology on the internet, just an improved
Business Model, serving you the same data that's always been there.


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