1. Financial Model Workload Model Risk Model Risk Model

2. Horizontal Scaling Distributed web-like Vertical Scaling Grid-like Diagonal Scaling

3. Horizontal Scaling Vertical Scaling Web services Transaction databases Data warehouses Data mining Partitionable HPTC Non-partitionable HPTC HPTC = High-Performance Transaction Processing Shared memory Distributed memory Complex Simple Tight coupling Large workloads Loose coupling Small workloads

4. Type of IT service contract Total annual cost Fixed Workload On-premise Reserved cloud Cloud only OPEX standard pricing $35K $18.5K OPEX reserve pricing 24X5X365 load OPEX reserve pricing 40-hour week load $10.2K $7.8K CAPEX + 25% OPEX

5. Type of IT service contract Total annual cost Fixed Workload On-premise Hybrid cloud $8.8K $15.6K CAPEX + 25% OPEX Variable Workload CAPEX + 30% OPEX