1. Cloud: everything you wanted to know, but were afraid to ask
Stefano Grazioli and Dan Elron

2. Plan for the day
Miniquiz
WINIT
Cloud

3. 6-Minute miniquiz
Grab a sheet of paper - Write date and your name on it
What is “disruption” according to Christiansen? Explain.
Is Tesla a disruptive innovation according to Christiansen’s theory? Explain.
What is a business model (not the BMC)? Define and offer an example.

4. What Is New In Technology?

5. Why the name “cloud”?

6. What is the cloud?
The cloud is a vast set of connected computing resources: network equipment, servers, storage devices, etc. that are located in often large, remote datacenters AND that implement a style of computing called cloud computing

7. What is cloud computing?
Cloud computing is a way to enable on-demand network access to shared pool of configurable computing resources (e.g., servers, storage, applications) that can be with minimal service provider interaction, and metered. (NIST)
Cloud Computing
(think google drive)
Cloud computing is a way to enable on-demand network access to a shared pool of configurable computing resources (e.g., servers, storage, applications) that can be rapidly provisioned with minimal service provider interaction, and metered. (NIST)

9. Where are the datacenters?
Why it matters: 1) cooling 2) latency 3) resilience
Source: Atomia 2018

10. Who sells cloud services?

11. Cloud vs. Internet?

12. Two key technological advances enabled cloud computing
1) The location of applications, data storage, and user interfaces is less and less constrained by geography and more and more by economics.

13. 2. OS virtualization and clustering have broken the one-to-one link between hardware and OS.
UNIX
USERS
UNIX
UNIX
UNIX
UNIX
UNIX
UNIX
WINDOWS
WINDOWS
WINDOWS
WINDOWS
WINDOWS
WINDOWS

14. Hippo Insurance - A fintech startup

15. Hippo architecture*: On prem
Customers
Apps
Database
Operating System
Virtualization and clustering
Network, Servers and Storage
Investment
Variable Costs
Agility
Scalability
Resilience

16. Hippo architecture: colocation
Customers
Apps
Database
Operating System
Virtualization and clustering
Investment
Costs
Agility
Scalability
Resilience
Network, Servers and Storage

17. Why cloud? Economies of scale
James Hamilton (IBM, MS, AWS) Building a large datacenter ~ $200 M
Resource
Cost in
Medium Data Centers (~1k servers)
Very Large Data Centers
Ratio
Network
$95
Mbps / month
$13
7.1x
Storage
$2.20
GB / month
$0.40
5.7x
Management
≈140 servers per admin.
>1000 servers per admin.
Google: What is the cost of cloud storage per TB?
Old data, but makes the point

18. Hippo architecture: IaaS
Customers
Apps
Database
Operating System
Virtualization and clustering
Investment
Costs
Agility
Scalability
Resilience
Network, Servers and Storage

19. Hippo architecture: PaaS
Customers
Apps
Database
Operating System
Virtualization and clustering
Investment
Costs
Agility
Scalability
Resilience
Network, Servers and Storage

20. Hippo architecture (SaaS)
Customers
Apps
Database
Operating System
Virtualization and clustering
Investment
Costs
Agility
Scalability
Resilience
Network, Servers and Storage

21. Business definition of cloud computing
A form of outsourcing of the IT functions and resources of an organization.
A third-party manages and runs part of your technology

22. Cloud growth: rapid, mostly in SaaS
Global

23. Virtualization and clustering
What if a single organization implements cloud computing (e.g., no third-party)?
Customers
Private cloud
Public cloud
Hybrid cloud
Apps
Database
Operating System
Virtualization and clustering
Network, Servers and Storage

24. Main perceived benefits

26. LOSS OF ORGANIZATIONAL TRUST LARGER THAN EXPECTED COSTS
Main business risks
LOSS OF ORGANIZATIONAL TRUST
LOSS OF CONTROL
LARGER THAN EXPECTED COSTS
LOSS OF INNOVATION
LOCK - IN
Raiborn et al AH 2009

27. What Do You Do When Employees Start Using a Free Cloud Service?