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									                     ARMA Presentation
                       November 18, 2009

                     An Overview of
                    Cloud Computing
                                           Presented by:
                                           Nicholas Kottyan
                                           CEO, DataChambers, LLC

November 18, 2009                                               1
   •    Objective
   •    History of Cloud Computing
   •    Definitions
   •    Cloud Characteristics, Types and
        Deployment Models
   •    Issues
   •    Clouds vs. Traditional
   •    Recap - Economics - Next Steps
   •    Q&A
November 18, 2009                          2
        To provide a general overview of cloud
        computing including:
          • How could affect my future business
          • Is the cloud for me and my business
          • What are some of the issues I should
          • Why should this be important to me

November 18, 2009                                  3
Origin of the term “Cloud Computing”
            • “Comes from the early days of the Internet
              where we drew the network as a cloud… we
              didn’t care where the messages went… the cloud
              hid it from us” – Kevin Marks, Google
            • First cloud around networking (TCP/IP
            • Second cloud around documents (WWW data
            • The emerging cloud combines the infrastructure
              complexities of servers, applications, data, and
              heterogeneous platforms
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                    Summarized History
• 1960 - John McCarthy opined that "computation may someday be
  organized as a public utility"
• Early 1990s – The term “cloud” comes into commercial use referring
  to large networks and the advancement of the Internet.
• 1999 – is established, providing an “on demand”
  SaaS (Software as a Service).
• 2001 – IBM details the SaaS concept in their “Autonomic Computing
• 2005 – Amazon provides access to their excess capacity on a utility
  computing and storage basis
• 2007 – Google, IBM, various Universities embark on a large scale
  cloud computing research project
• 2008 – Gartner says cloud computing will “shape the relationship
  among consumers of IT services, those who use IT services and
  those who sell them”

November 18, 2009                                                   5
• Lots of confusion
• Several different “loosely applied” definitions
• a style of computing in which massively
  scalable IT-related capabilities are provided
  "as a service" using Internet technologies to
  multiple external customers

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                    Definition Continued
• an internal or external “cloud enabled” service
• the provision of dynamically scalable and
  often virtualized resources as a service over
  the Internet.
• a general term for anything that involves
  delivering hosted services over the Internet.

November 18, 2009                               7
                        Definition Continued
• 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.
   (NIST Definition, National Institute of Standards and Technology)
• This cloud model promotes availability and is composed of
  five essential characteristics, three service models, and four
  deployment models.

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       5 Essential Cloud Characteristics
         • On-demand self-service
         • Broad network access (Internet)
         • Resource pooling
            – Location independence
         • Rapid elasticity
         • Measured service

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         Additional Cloud Characteristics
         • Cloud computing often leverages:
               – Massive and Rapid scalability
               – Homogeneity
               – Virtualization
               – Resilient computing
               – Low cost software
               – Geographic distribution, (many datacenters)
               – Service orientation
               – Advanced security technologies
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                Cloud Deployment Models
    • Private Cloud (a.k.a. Internal Cloud)
          – enterprise owned or leased
    • Community Cloud (a.k.a. External Cloud)
          – shared infrastructure for specific community
    • Public cloud (a.k.a. External Cloud)
          – Sold to the public, mega-scale infrastructure
    • Hybrid cloud
          – composition of two or more clouds

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                    Cloud Service Models
• Cloud Software as a Service (SaaS)
     – Use provider’s applications over a network
• Cloud Platform as a Service (PaaS)
     – Deploy customer-created applications to a cloud
• Cloud Infrastructure as a Service (IaaS)
     – Rent processing, storage, network capacity, and other
       fundamental computing resources

      To be considered “cloud” services are deployed
       on top of cloud infrastructure that has the key

November 18, 2009                                              12
                       Issues with the Cloud
             •      Security (number 1 concern)
             •      Performance
             •      Availability
             •      Lack of Standards
             •      Inability to Customize
             •      Hard to Integrate with current in-house IT
             •      Regulatory requirements
             •      Note enough suppliers yet

November 18, 2009                                                13
                    Analyzing Cloud Security
    • Clouds are massively complex systems that can be
      reduced to simple primitives that are replicated
      thousands of times
    • These complexities create many issues related to
      security as well as all aspects of Cloud computing
    • Clouds typically have a single security architecture
      but have many customers with different demands
    • Cloud security issues may drive and define how we
      adopt and deploy cloud computing solutions
    • Highly sensitive data is likely to be on private clouds
      where organizations have complete control over
      their security model
November 18, 2009                                         14
                        More on Security
  •    Trusting vendor’s security model
  •    Where is the data stored and who is securing it
  •    Inability to respond to audit requirements
  •    Indirect administrator accountability
  •    Loss of physical control
  •    Data retention / backup standards
  •    Redundancy / Disaster Recovery
  •    Handling Compliance
        o    GLBA, HIPAA, SOX, PCY
        o    State laws
        o    International – EU Data Protection Directive
        o    FTC Scrutiny
        o    SAS 70 Audits

November 18, 2009                                           15
         Objectives of Cloud Computing
     • Core objectives and principles that cloud
       computing must meet to be successful:
           –   Security
           –   Scalability
           –   Availability
           –   Performance
           –   Cost-effective
           –   Acquire resources on demand
           –   Release resources when no longer needed
           –   Pay for what you use
           –   Leverage others’ core competencies
           –   Turn fixed cost into variable cost
November 18, 2009                                        16
           Cloud Based Service examples
  • Peer to Peer                       • Software as a Service
        – BOINC, Skype                    – GoogleApps, Salesforce,
  • Web Apps                                SpringCM
        – Facebook, Twitter, YouTube   • Storage
  • Security as a Service                 – Content Distribution
                                              • BitTorret, Amazon
        – MessageLabs, Purewire,                CloudFront
          ScanSafe, Zscaler
                                          – Sychronisation
  • Software plus services                    • LiveMesh
        – Microsoft Online Services

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           Clouds vs. Traditional Hosting
• Three distinct characteristics that differentiate
  clouds from traditional hosting
     – It is sold on demand
           • Typically by the minute or the hour
     – It is elastic
           • A user can have as much or as little of a service as they
             want at any given time
     – The service is fully managed by the provider
           • The consumer needs nothing but a personal computer
             and Internet access

November 18, 2009                                                    18
                    Cloud Economics
• Estimates vary widely on possible cost savings
   o “If you move your data center to a cloud provider, it
      will cost a tenth of the cost.” – Brian Gammage, Gartner Fellow
• Use of cloud applications can reduce costs from 50%
  to 90% - CTO of Washington D.C.
• IT resource subscription pilot demonstrated a 28% cost
  savings - Alchemy Plus cloud (backing from Microsoft)
• “Using Cloud infrastructure saves 18% to 28% before
  considering that you no longer need to buy peak
  capacity” – George Reese, founder Valtira and enStratus
• When implementing Cloud you must consider other
  costs which may not be apparent today.
November 18, 2009                                                 19
• Clouds
     –     Provide internet based services
     –     Available on demand
     –     And fully managed by the provider
     –     There is no one “Cloud”. There are many models and
• Clouds let you
     –     Avoid CapEx on hardware, software, and service
     –     Share infrastructure and cost
     –     Lower management overhead
     –     Access a large range of apps

• Many questions still remain!!!

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        Thanks for the opportunity present this subject!!

                                       Nicholas L. Kottyan

November 18, 2009                                            21

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