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    HCL TECHNOLOGIES Ltd.

    REPORT

    ON

    SIX WEEKS INDUSTRIAL TRAINING

    AT

    HCL TECHNOLOGIESLTD

    IN PARTIAL FULFILLMENT OF REQUIREMENTS FOR THE AWARD

    OF

    BACHELOR OF TECHNOLOGY

    (Information Technology)

    CLOUD COMPUTING

    Advanced Institute of Technology & Management

    SUBMITTED BY: SUPERVISED BY:

    Mr.Rahul Upadhyay(It08070)

    Mr.rajeev lochan

    HCL T echnologies Ltd.A 9,Sector 3

    Noida

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    INDEX

    Declaration

    Acknowledgement

    1. Organization Profile..7

    1.1 National e-Governance plan(NEGP).7 1.2 State wide area network(SWAN)..7

    1.3 Elitex 200781.4 National informatics centre...8

    2. Introduction to Cloud Computing

    2.1 Infrastructure as service......92.2 Platform as service..92.3 Software as service..9

    3. Comparisons

    3.1Grid Computing3.2Utiltiy Computing

    3.3 Autonomic Computing

    3.4 Virtualization3.4.1 Advantage

    4. External and Internal Clouds

    4.14.24.3

    5. Growth of Cloud Computing

    5.1

    5.25.35.45.56. Benefits of Cloud Computing

    6.1

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    6.26.36.46.5

    6.610. Advantages as Calculated by Altius IT

    11. Cloud computing service delivery considerations

    12. Cloud By Intel Corporation

    13. Drawbacks

    14. Concerns

    15. World Privacy Forum

    16. Summary

    Batch 2007-2011

    DECLARATION

    This is to certify that the report on seven months training in CC&BTdepartment part of HCL Technologies Ltd. which is being submitted forpartial fulfillment for the award of Degree of Bachelor Of Technology,information Technology, Maharshi dyanand University, Rohtak is anauthentic work carried out by me at HCL Technologies Ltd., A 9, Sector3,Noida under the guidance ofMr. Rajeev Lochan

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    The matter embodied in this project work has not been submitted earlier forthe award of any degree or diploma.

    Rahul Upadhay(It08070)V Semester,

    Advanced Institute of Technology and Management, Palwal

    It is certified that the above statements made by the candidate are correct tothe best of my knowledge and belief.

    Rajeev Lochan

    Senior Director & HoDDept. of Information Technology

    HCL Technologies Ltd.,A 9, Sector-3, Noida,UP .

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    Acknowledgement

    Industrial practical training is a period to strengthen ourtheoretical, practical & technical concepts, which enhances our skillsin the field of technology. The successful realization of the project isan outgrowth of a consolidated effort of the people from disparatefronts. Its only with their support and guidance that the developercould meet the end.

    I am deeply indebted to Mr.Rajeev Lochan (Senior Director &HoD) and. Mr. Arvind das (Lab incharge), who gave me theopportunity to work on Cloud Computing Project. The faith and

    confidence they have kept in me have been the driving force behindmy each step taken for the development of this project. Without theirabiding inspiration, generous guidance and encouragement, I wouldnot have been able to cope with project work and corporateenvironment.

    I pay my regards to both of them for giving me a chance to work in CC & BTDepartment and enhance my knowledge and capabilities. I am also thankful to himfor helping time to time in getting the certificates and documents.

    No words could adequately convey my thanks to all the membersof CC & BT-group, Department of IT, HCL Technologies Ltd. forcreating such a friendly environment that I never felt as a projecttrainee there. They all were so friendly with me that I never thoughteven a moment before asking them anything.

    Lastly, I thank the almighty, my family members and friends whoindirectly co-operated me and tolerate my negligence for them during

    the period of Training.

    Rahul Upadhyay

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    1. Organization Profile

    Overview

    The year 2006 witnessed a revalidation of Indian Information Technology-Business Process Outsourcing (IT-BPO) growth story, driven by a maturing

    appreciation of Indias role and growing importance in global services trade.Industries performance was marked by sustained double-digit revenue growth,steady expansion into newer service-lines and increased geographic penetration,and an unprecedented investment by Multinational Corporations (MNCs) - in spite oflingering gaps about gaps in talent and infrastructure impacting Indias costcompetitiveness.

    The Indian IT-BPO sector is committed to extend its unmatched reputation inquality, to information security and is working on a four-pronged programmer toachieve this objective. This comprises: a) engaging key stakeholders (policymakers, industry players, enforcement agencies, etc). To build a commonunderstanding of key issues relating to information security- in the context of global

    service delivery; b) educating industry constituents about developments ininformation security policies and practices; c) enactment of policy reform requiredto ensure compliance; d) addicting in the effective enforcement of policyframeworks by encouraging the practice of periodic security audits andcertification, developing and maintaining an incident response database andfacilitating greater cooperation with enforcement agencies.

    1.1 National e-Governance Plan (NeGP)

    The National Common Minimum Programmer adopted by the Governmentaccords high priority to improving the quality of basic governance and in that

    context has proposed to promote e-Governance on a massive scale in areas ofconcern to the common man.

    At the State-level the Mission Mode Project (MMP) would include servicesaround road transport, land records, commercial taxes, employment exchanges,agriculture, civil supplies, treasuries, land registration, policy and education, whileat Central Level, it will cover areas such as insurance, Central Excise, National ID,pensions, e-Posts, banking, passport, visa and income-tax.

    1.2 State Wide Area Network (SWAN)

    Government has already approved a scheme for the establishment of StateWide Area Networks (SWANs) at a total outlay of Rs. 3,334 crore over a period of5yaers. These SWANs will extend data connectivity of 2Mbps up-to the block level inall States and Union Territories in country. The block level nodes in turn, will have aprovision to extend connectivity further to village level using contemporary wirelesstechnology. Under the scheme, proposal for 24 states/UTs have already beensanctioned.

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    1.3 ELITEX 2007

    Electronics and Information Technology Expansion 2007 (ELITEX 2007), anexhibition and seminar to showcase technologies, products and services developedunder the aegis of Department of Information Technology, was held during 10-11January 2007 at India Habitat Centre, New Delhi. This event provided anopportunity to close interaction between academia, R&D institutions and industries.Three technologies developed by the Department institutions were transferred toindustries for commercialization and 16 new products/technologies were releasedduring the Exposition.

    1.4 National Informatics Centre

    For timely and faster delivery/retrieval of information, NIC has connected allthe State Centers with leased line/fiber optics of capacity ranging from 2-45 Mbpswith backup links in 19 States. The districts have been provided 2 Mbps leased

    lines. e-Filing of cases has been started in Supreme Court. IT based AttendanceRecording System has also been in implemented for all employees of SupremeCourt.

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    CLOUD COMPUTING

    What is cloud computing?

    Cloud computingis a style of computing in which dynamically scalableand often virtualized resources are provided as a service over the Internet.Users need not have knowledge of, expertise in, or control over the technology

    infrastructure in the "cloud" that supports them.

    The concept generally incorporates combinations of the following:

    Infrastructure as a service (IaaS) Platform as a service (PaaS) Software as a service (SaaS) Other recent (ca. 200709) technologies that rely on the Internet to

    satisfy the computing needs of users. Cloud computing services often

    provide common business applications online that are accessed from aweb browser, while the software and data are stored on the servers.

    The term cloudis used as a metaphor for the Internet, based on how theInternet is depicted in computer network diagrams and is an abstraction for thecomplex infrastructure it conceals.

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    Comparisons

    Cloud computing can be confused with:

    a) Grid computing - "a form of distributed computing whereby a 'super and

    virtual computer' is composed of a cluster of networked, loosely coupledcomputers, acting in concert to perform very large tasks".

    b) Utility computing - the "packaging of computing resources, such ascomputation and storage, as a metered service similar to a traditional publicutility such as electricity".

    c) Autonomic computing - "computer systems capable of self-management".

    d) Virtualization -The Cloud Computing concept has become a reality todaydue to the technology core that made it happen. The real effectiveness of Cloudcomes from its core called Virtualization, which provides abstraction for theuser.

    Indeed, many cloud computing deployments as of 2009[update] depend on grids,have autonomic characteristics, and bill like utilities but cloud computingtends to expand what is provided by grids and utilities. Some successful cloudarchitectures have little or no centralized infrastructure or billing systemswhatsoever, including peer-to-peer networks such as Bit Torrent and Skype,and volunteer computing such as SETI@home.

    Furthermore, many analysts are keen to stress the evolutionary, incrementalpathway between grid technology and cloud computing, tracing roots back toApplication Service Providers (ASPs) in the 1990s and the parallels to SaaS,often referred to as applications on the cloud. Some are of the persuasion thatthe true difference between these terms is marketing and branding; that the

    technology evolution was incremental and the marketing evolution discrete.

    3.1 GRID COMPUTING

    Grid computing(or the use of computational grids) is the application ofseveral computers to a single problem at the same time usually to a

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    scientific or technical problem that requires a great number of computerprocessing cycles or access to large amounts of data.

    One of the main strategies of grid computing is using software to divide andapportion pieces of a program among several computers, sometimes up to

    many thousands. Grid computing is distributed, large-scale clustercomputing, aswell as a form of network-distributed parallel processing. The size of gridcomputing may vary from being small confined to a network of computerworkstations within a corporation, for example to being large, publiccollaboration across many companies and networks. "The notion of a confinedgrid may also be known as an intra-nodes cooperation whilst the notion of alarger, wider grid may thus refer to an inter-nodes cooperation". Thisinter-/intra-nodes cooperation "across cyber-based collaborative organizations

    are also known as Virtual Organizations".

    It is a form ofdistributed computing whereby a super and virtual computer iscomposed of a cluster of networked loosely coupled computers acting in concert to

    perform very large tasks. This technology has been applied to computationallyintensive scientific, mathematical, and academic problems through volunteercomputing, and it is used in commercial enterprises for such diverse applicationsas drug discovery, economic forecasting, seismic analysis, andback-office data processing insupport ofe-commerce and Web services.

    What distinguishes grid computing from conventional cluster computingsystems is that grids tend to be more loosely coupled, heterogeneous, andgeographically dispersed. Also, while a computing grid may be dedicated to aspecialized application, it is often constructed with the aid of general-purposegrid software libraries and middleware.

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    http://en.wikipedia.org/wiki/Cluster_(computing)http://en.wikipedia.org/wiki/Virtual_Organization_(Grid_computing)http://en.wikipedia.org/wiki/Distributed_computinghttp://en.wikipedia.org/wiki/Loose_couplinghttp://en.wikipedia.org/wiki/Volunteer_computinghttp://en.wikipedia.org/wiki/Volunteer_computinghttp://en.wikipedia.org/wiki/Drug_discoveryhttp://en.wikipedia.org/wiki/Economic_forecastinghttp://en.wikipedia.org/wiki/Seismic_analysishttp://en.wikipedia.org/wiki/Back_officehttp://en.wikipedia.org/wiki/E-commercehttp://en.wikipedia.org/wiki/Web_servicehttp://en.wikipedia.org/wiki/Cluster_(computing)http://en.wikipedia.org/wiki/Virtual_Organization_(Grid_computing)http://en.wikipedia.org/wiki/Distributed_computinghttp://en.wikipedia.org/wiki/Loose_couplinghttp://en.wikipedia.org/wiki/Volunteer_computinghttp://en.wikipedia.org/wiki/Volunteer_computinghttp://en.wikipedia.org/wiki/Drug_discoveryhttp://en.wikipedia.org/wiki/Economic_forecastinghttp://en.wikipedia.org/wiki/Seismic_analysishttp://en.wikipedia.org/wiki/Back_officehttp://en.wikipedia.org/wiki/E-commercehttp://en.wikipedia.org/wiki/Web_service
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    3.2 UTILITY COMPUTING12

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    Utility computingis the packaging ofcomputing resources, such as computationand storage, as a metered service similar to a traditionalpublic utility (such aselectricity

    ,water

    ,natural gas

    , ortelephone network

    ). This system has the advantage of alow or no initial cost to acquire hardware; instead, computational resources areessentially rented. Customers with very large computations or a sudden peak indemand can also avoid the delays that would result from physically acquiringand assembling a large number of computers.

    Conventional Internet hosting services have the capability to quickly arrange for therental of individual servers, for example to provision a bank ofweb servers toaccommodate a sudden surge in traffic to a web site.

    "Utility computing" has usually envisioned some form ofvirtualization so that theamount of storage or computing power available is considerably larger thanthat of a single time-sharing computer. Multiple servers are used on the "backend" to make this possible. These might be a dedicated computer clusterspecifically built for the purpose of being rented out, or even an under-utilizedsupercomputer. The technique of running a single calculation on multiplecomputers is known as distributed computing.

    The term "grid computing" is often used to describe a particular form of distributedcomputing, where the supporting nodes are geographically distributed or crossadministrative domains. To provide utility computing services, a company can"bundle" the resources of members of the public for sale, who might be paidwith a portion of the revenue from clients.

    One model, common among volunteer computing applications, is for a centralserver to dispense tasks to participating nodes, on the behest of approved end-

    users (in the commercial case, the paying customers). Another model,sometimes called the Virtual Organization (VO) is more decentralized, withorganizations buying and selling computing resources as needed or as they go idle.

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    http://en.wikipedia.org/wiki/Computational_resourcehttp://en.wikipedia.org/wiki/Public_utilityhttp://en.wikipedia.org/wiki/Electricityhttp://en.wikipedia.org/wiki/Waterhttp://en.wikipedia.org/wiki/Natural_gashttp://en.wikipedia.org/wiki/Telephone_networkhttp://en.wikipedia.org/wiki/Computational_resourcehttp://en.wikipedia.org/wiki/Internet_hosting_servicehttp://en.wikipedia.org/wiki/Web_serverhttp://en.wikipedia.org/wiki/Virtualizationhttp://en.wikipedia.org/wiki/Time-sharinghttp://en.wikipedia.org/wiki/Computer_clusterhttp://en.wikipedia.org/wiki/Supercomputerhttp://en.wikipedia.org/wiki/Distributed_computinghttp://en.wikipedia.org/wiki/Grid_computinghttp://en.wikipedia.org/wiki/Administrative_domainhttp://en.wikipedia.org/wiki/Volunteer_computinghttp://en.wikipedia.org/wiki/Virtual_Organization_(Grid_computing)http://en.wikipedia.org/wiki/Computational_resourcehttp://en.wikipedia.org/wiki/Computational_resourcehttp://en.wikipedia.org/wiki/Public_utilityhttp://en.wikipedia.org/wiki/Electricityhttp://en.wikipedia.org/wiki/Waterhttp://en.wikipedia.org/wiki/Natural_gashttp://en.wikipedia.org/wiki/Telephone_networkhttp://en.wikipedia.org/wiki/Computational_resourcehttp://en.wikipedia.org/wiki/Internet_hosting_servicehttp://en.wikipedia.org/wiki/Web_serverhttp://en.wikipedia.org/wiki/Virtualizationhttp://en.wikipedia.org/wiki/Time-sharinghttp://en.wikipedia.org/wiki/Computer_clusterhttp://en.wikipedia.org/wiki/Supercomputerhttp://en.wikipedia.org/wiki/Distributed_computinghttp://en.wikipedia.org/wiki/Grid_computinghttp://en.wikipedia.org/wiki/Administrative_domainhttp://en.wikipedia.org/wiki/Volunteer_computinghttp://en.wikipedia.org/wiki/Virtual_Organization_(Grid_computing)http://en.wikipedia.org/wiki/Computational_resource
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    3.3 AUTONOMIC COMPUTING

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    Autonomic Computingis an initiative started by IBM in 2001. Its ultimateaim is to develop computer systems capable ofself-management, to overcome therapidly growing complexity of computing systems management, and to reducethe barrier that complexity poses to further growth. In other words, autonomiccomputing refers to the self-managing characteristics of distributed computingresources, adapting to unpredictable changes whilst hiding intrinsic complexityto operators and users. An autonomic system makes decisions on its own,using high-level policies; it will constantly check and optimize its status andautomatically adapt itself to changing conditions. As widely reported inliterature, an autonomic computing framework might be seen composed byAutonomic Components (AC) interacting with each other[1]. An AC can bemodeled in terms of two main control loops (local and global) with sensors (forself-monitoring), effectors (for self-adjustment), knowledge and planer/adapter

    for exploiting policies based on self- and environment awareness.

    Driven by such vision, a variety of architectural frameworks based on self-regulating autonomic components has been recently proposed. A very similartrend has recently characterized significant research work in the area of multi-agent systems. However, most of these approaches are typically conceivedwith centralized or cluster-based server architectures in mind and mostlyaddress the need of reducing management costs rather than the need of

    enabling complex software systems or providing innovative services.Autonomic systems:

    A possible solution could be to enable modern, networked computing systemsto manage themselves without direct human intervention. TheAutonomicComputing Initiative (ACI) aims at providing the foundation for autonomicsystems. It is inspired by the autonomic nervous system of the human body. Thisnervous system controls important bodily functions (e.g. respiration, heart rate,

    and blood pressure) without any conscious intervention.

    In a self-managing Autonomic System, the human operator takes on a new role:He does not control the system directly. Instead, he defines general policiesand rules that serve as an input for the self-management process. For this

    process, IBM has defined the following four functional areas:

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    http://en.wikipedia.org/wiki/IBMhttp://en.wikipedia.org/wiki/Self-management_(computer_science)http://sourceforge.net/project/showfiles.php?group_id=225956http://en.wikipedia.org/wiki/Autonomic_nervous_systemhttp://en.wikipedia.org/wiki/Self-managementhttp://en.wikipedia.org/wiki/IBMhttp://en.wikipedia.org/wiki/Self-management_(computer_science)http://sourceforge.net/project/showfiles.php?group_id=225956http://en.wikipedia.org/wiki/Autonomic_nervous_systemhttp://en.wikipedia.org/wiki/Self-management
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    The Cloud offers a single delivery pipe called Internet using which services aredelivered. Even though it appears very simple from the users perspective,there are lot of computing marvel happen in the service provider end. One ofthe main objectives of Cloud Computing is to improve the resource utilization

    by sharing the available resources to multiple different on demand needs. Thecore technology which eased the need of improving resource utilization,sharing resources and also satisfying on demand needs is Virtualization which means abstracting the underlying resources (Ex: processor, memory,network and storage devices ) so that multiple operating systems (Ex:Windows, Linux, etc., ) can be run on a single physical system simultaneously.These individual operating system instances are called as Virtual Machines.Depending upon the layer whether the resources abstracted, virtualization is

    can be applies to various resources which includes Storage, Network,Operating System and Application level Virtualization. All these virtualizationtechniques enable Cloud Computing service provider to design the datacenterin flexible, scalable manner so that end user demands are met with ease. Fornumber of years, the virtualization technique was large experimented for testand development purposes as the industry felt that the technology is notrelatively matured enough to run production systems. At these times, only few

    players (VMware and Microsoft) were in the market to expedite the process of

    maturing the technology.

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    3.4.1 Advantage

    The advantage of Virtualization goes beyond resource utilization andtechnology service provider. It offers environmental advantage is thatreduction in energy consumption. These Virtualized server mechanism

    consumes lesser power compared to the customer hosting the service bythemselves. This eventually implies that the Virtualization is helping to makethe environment greener. For example Energy consumption of running ten

    physical machines compared to energy consumption running five virtualmachines on two physical machines is significantly high. As one requiresfewer physical machines with virtualization and so the need for real estatespace also reduces.

    With global warming and go-green initiatives taking center stage of everycorporation, the need to become environmental friendly goes beyond mere

    profitability of the company. Thanks to effective resource utilization achievedby Virtualization, it helps customers and their organizations to go in thegreen way.

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    4 External and Internal Clouds

    Many technical and legal issues prevent broader enterprise adoption of externalclouds. These issues are largely addressed if the cloud operates inside theenterprise, where there is greater control over the cloud. Because of this, an

    internal cloud is the ideal place to start proving cloud-related technologies andis a logical first step before attempting more widespread migration to anexternal cloud.

    A large enterprise can gain many benefits from the greater abstraction ofapplications and infrastructure that accompanies a migration to an internalcloud. Once standard interfaces and protocols exist and technical and legalobstacles have been overcome, IT organizations can start to make greater useof external cloud-based capabilities with minimal disruption to users, whilereducing the data center footprint of their internal physical infrastructure.

    This progression means that IT organizations need to balance three broad areasof computing while making the transition to the external cloud:

    Current, conventional computing

    Internal cloud

    External cloud

    4.1 Conventional ComputingConventional computing will continue to provide the enterprise withcapabilities for many years, with a gradual migration of applications to internaland external clouds. Some conventional computing resources are likely toremain in long-term use, including those that need to be physically located onisolated segments or associated with specific hardware.

    4.2 Internal CloudInternal clouds can have most of the features of external clouds. They can use

    similar technologies to host cloud-aware applications and to provide a dynamicinfrastructure that responds to demand and fault signals. IT organizations cantry out newchargeback billing methods; these also provide a benchmark formeasuring the value of moving a service to external suppliers.

    Internal clouds can act as a bridge to a future based on the external cloud.Applications can be developed to standards supported by both internal andexternal clouds, so that they may be readily migrated to an external cloud as

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    necessary to support business strategy. It should be possible to move anapplication between locations within the internal cloud without disruption tousers. In the same way, it should ideally be possible to perform live migrationof an application from an internal IaaS cloud to an external cloud withoutdisruption to users.

    Much of an enterprises infrastructure could be serviced by a single internalcloud comprised of multiple physical data centers. The internal cloud could belogically and physically subdivided if necessary for business continuity orregulatory purposes.

    4.3 External Cloud

    Ultimately, external clouds will play a significant role in delivering

    conventional enterprise compute needs, but the internal cloud is expected toremain a critical part of the IT infrastructure for the foreseeable future. Keydifferentiating applications may never move completely out of the enterprise

    because of their mission-critical or business-sensitive nature.

    GROWTH OF CLOUD COMPUTING:-

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    An Opportunity In Its Infancy But, Even Conservatively, Poised to Drive Big

    Marginal Growth

    Of the $383 billion customers will spend this year within the five major ITsegments noted above, $16.2 billion or a mere 4% will be consumed as

    cloud services. By 2012, customer spending on IT cloud services willgrow almost threefold, to $42 billion. By 2012 based on a conservativeforecasting approach (see fine print below) customer spending on IT cloudservices will grow almost threefold, to $42 billion, accounting for 9% ofcustomer spending.

    One reason IT suppliers are sharpening their focus on the cloud model is its

    growth trajectory, which at 27% CAGR is overfive times the growth rateof the traditional, on-premise IT delivery/consumption model. Spending on ITcloud services is growing at overfive times the rate of traditional, on-premiseIT.As noted in our recent user survey, this rapid growth is being driven bythe ease and speed with which users can adopt these offerings, as well as thecloud models economic benefits (for users and suppliers alike) which willhave even greater resonance in the current economic crisis.

    Even more striking than this high growth rate, is the contribution cloud

    offerings growth will soon make to the IT markets overall growth. By 2012 even at only 9% of user spending cloud services growth will account forfully 25% of the industrys year-over-year growth in these five majorsegments. In 2013, if the same growth trajectories continue, IT cloud servicesgrowth will generate about one-third of the industrys net new growth in thesesegments.

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    The implication for IT suppliers is clear: during the next several years, ITsuppliers mustposition IT suppliers mustposition as leaders in IT cloudservices or forfeit an ever-expanding portion of the industrysgrowth.themselves as leaders in IT cloud services or forfeit an ever-expanding

    portion of the industrys growth. Cloud services accelerating impact on IT

    industry growth is consistent with the key insight from our cloud servicesuser

    survey data: that IT cloud services are at a crossing the chasm moment, thepoint at which suppliers must step up their commitment to the new technologyor model, and the point at which failure to do so starts to exact harsher

    penalties on supplier performance.

    Applications Are Leading the Way and Will Continue To Do So

    Among the five enterprise IT segments we analyzed, Business Applications dominate cloud servicesspending, both in 2008 (57%) and in 2012 (52%).

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    An End-User-Centric View: These figures represent enterprise end-user demand for IT products and solutions, through both on-premise andcloud services models. By end users we mean businesses that consumethese IT products and solutions either for their internal use, or as anunder-the-covers ingredient within their offerings to the marketplace.Excluded from this forecast is spending by cloud services providers whoare simply reselling the product/solution, without value-add other than

    the delivery model transform; we consider such services providers asresellers the true end-users are their customers. In contrast, cloudservices providers who are not explicitly reselling the forecasted IT

    product/solution as a service, but are using it as a supporting ingredientwithin their offerings, are considered end-users (e.g., Salesforce.com, acloud services provider of CRM software, is counted as an end-userwithin the storage, server, and other IT segments outside of its own

    primary product/service segments [business applications, application

    development/deployment]).

    A Conservative Approach and Track Record: This forecast is on theconservative end of the spectrum. Our goal, as usual, is to be anti-hype

    to recognize and highlight the disruptive trends in the market, but to

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    avoid a forecast bubble. That was our track record in forecastingInternet adoption in the late 1990s, and our Internet forecasts have heldup extremely well through, and beyond, the Internet Bubble period. Wehave also had a conservative track record in forecasting the SaaS market,for which we have traditionally underestimated growth, and increased

    our forecast significantly each of the past several years. If you have amore aggressive view of IT Cloud Services adoption, the other end of thespectrum a more aggressive forecast could well be 1.5-2 times thespending level in the forecast above.

    Watch Conditions On the Ground: The ramp-up scenario for ITcloud services is very fluid the forecast will be greatly impacted by: 1)major vendors degree of aggressiveness in developing and promotingcloud offerings, 2) the rate at which partner ecosystems morph to adaptto and drive the cloud model, and 3) macroeconomic factors suchas impact of the current global economic crisis. In our view, while theeconomic crisis could negatively impact the growth of this market, it ismore likely that it will accelerate the roll out and adoption of Cloud IT

    services, because of the models greater affordability (vs. traditional ITofferings), and ITs critical role in supporting much-needed innovationand economic growth.

    IT Cloud Services Adoption WillDrive (but Shift) On-Premise

    Demand: It is important to note that while end-users certainly consideron-premise vs. cloud services as alternative (and competitive)

    options for specific solutions, the cloud services delivery model for thosesolutions will not, for the most part, subtract from on-premise ITdemand. In fact, end user IT cloud services demand will actually drivedemandfor on-premise IT products and solutions but it will shift thatdemand to cloud services providers. This makes it extremely importantfor suppliers of IT products and solutions to develop detailedunderstanding of the changing routes to market, including the role of

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    cloud services providers, both as end-users and as a new and growingchannel.

    Some Definitional Details: Here are the submarkets we included ineach of the five major IT segments in the forecast:

    o Business Applications: includes Collaborative applications (such asMessaging, Conferencing and Team collaboration software), andBusiness applications (such as CRM, ERP, Financial, HCM, PLMand SCM).

    o Application Development & Deployment Software:

    includes Application Development software, Application LifecycleManagement software, Enterprise Mashup & Portal software,Information Management & Data Integration software, andMiddleware & Business Process Management software.

    o Systems Infrastructure Software: includes System and NetworkManagement software, Security software, Storage Managementsoftware, and System software.

    o Storage: includes Disk Storage.o Servers: includes all classes of Servers.

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    BENEFITS OF CLOUD COMPUTING

    Reduced Cost Cloud technology is paid incrementally, saving organizations money.

    Increased Storage Organizations can store more data than on private computer systems.

    Highly AutomatedNo longer do IT personnel need to worry about keeping software up todate.

    FlexibilityCloud computing offers much more flexibility than past computingmethods.

    More MobilityEmployees can access information wherever they are, rather than havingto remain at their desks.

    Allows IT to Shift FocusNo longer having to worry about constant server updates and othercomputing issues, government organizations will be free to concentrateon innovation.

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    WHAT THE BIGGIES /TECHIES HAVE TOSAY?

    Advantages as Calculated by Altius IT

    Cloud advantages over desktop software

    Many SAAS applications are available at little to no cost. In addition to lowersoftware costs, IT administration labor costs are reduced as software does notneed to be installed and constantly patched. SAAS applications tend to besupported by paid advertisers, thus subsidizing the cost to the software user.

    Another benefit is group collaboration. In the past, software was loaded onmany distributed devices. With the Internet cloud, software and data can bestored on centralized servers facilitating access to data by a large group ofusers.

    Cloud computing offers almost unlimited storage of applications and data. Nolonger must users and IT staff be concerned about collecting and archivingvolumes of data.

    Mobile applications

    Employees want functionality and access to data from a number of differentlocations. The Internet cloud allows hand held Personal Digital Assistants(PDAs) and laptop users to access applications and data from a variety oflocations. Internet cloud computing allows information to be accessed by anumber of different devices (desktop, laptop, mobile phone, GPS, etc.) sincethe applications and data are stored at Internet data centers.

    Mobile computing will drive more applications to the Internet cloud. Thecloud is an ideal way of supplying software and data to small computingdevices that dont have the storage and processing power to hold volumes ofapplications and information.

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    Application interfaces

    Internet applications leverage the power of end user devices by introducing tobrowsers features commonly found in the graphical interfaces on desktopapplications. Better software development tools support applications that can

    run on a wide range of devices from desktop browsers to smart phones.

    Malware protection

    A cloud computing approach may offer better malware protection. Unliketraditional anti-virus and anti-spyware solutions installed on an organizationsservers and desktops, cloud computing malware protection is delivered as aservice. Cloud computing may offer better protection over traditionalsolutions:

    1) No time lag between when a threat surfaces and when the malwareservice is updated to protect against the threat.2) Cloud malware service offers real time protection by combining

    detection services from a number of different sources. By using a varietyof malware protection engines (Symantec, McAfee, Trend Micro, etc.),the cloud service approach increases the ability to detect and preventmalware threats. In recent test, traditional solutions using only one anti-virus application were 83% successful at detecting risks. Success ratesusing cloud computing malware protection were as high as 98%.

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    Cloud computing service deliveryconsiderations:

    IT managers should take professional care and due diligence

    when evaluating cloud computing applications: Service levels - your organization should determine if the outsourced

    provider has professional, high performance infrastructures that canguarantee levels of performance delivery.

    Support user and technical support must be determined up front.Will first level user support be provided by their staff or yours?

    Redundancy organizations should have redundant solutions thatallow systems to continue operating even during single componentfailure. This includes the Internet software application as well as theorganizations connectivity to the Internet.

    Contingency plans business continuity and disaster recovery plansmust be updated and tested on a regular basis.

    Private clouds IT departments have the administration costs andresponsibilities of acquiring, installing, managing, and securing data

    centers.

    Security public and private clouds must ensure informationavailability, confidentiality, and integrity.

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    BY INTEL CORPORATION

    Cloud computing technology is a significant trend with implications for IntelIT. A growing number of suppliers are starting to provide cloud computingofferings, andanalysts project that some enterprises will purchase a significant percentage oftheir applications and infrastructure as cloud computing services within a fewyears. We have determined that cloud computing could

    provide significant benefits to Intel, including increased agility.

    BenefitsPotential benefits of cloud computing include:

    Agility, Adaptability, and FlexibilityA business group that wants to deploy a new application can do so relativelyquickly using cloud computing services, compared with weeks or months itcan take with the traditional enterprise model of buying servers, installingthem, and then deploying the application to the new servers. In many cases,users can purchase cloud services with a credit card and begin to use them

    almost immediately.Because cloud computing is built on a massively scalable shared infrastructure,cloud suppliers can in theory quickly provide the capacity required for verylarge applications without long lead times. Purchasers of IaaS capacity can runapplications on a variety of virtual machines (VMs), with flexibility in how theVMs are configured. Some cloud computing service providers have developedtheir own ecosystem of services and service providers that can make thedevelopment and deployment of services easier and faster. Adding SaaS

    capacity can be as easy as getting an account on a suppliers host.Cloud computing is also appealing when we need to quickly add computingcapacity to handle atemporary surge in requirements. Rather than buildingadditional infrastructure, cloud computing could in principle be used to provideon-demand capacity when needed.

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    Cost Savings:There is a perception that cloud computing can reduce cost. To date, savingshave generally been more clearly shown for small to medium-size businesses(SMBs). However, we have achieved cost savings with some of our SaaSdeployments, indicating that cost savings can be a factor in propellingenterprise cloud adoption.

    The relatively low upfront cost of IaaS and PaaS services, including VMs,storage, and data transmission, can be attractiveespecially for addressingtactical, transient requirements such as unanticipated workload spikes. Anadditional advantage is that businesses pay only for the resources reserved;there is no need for capital expenditure on servers or other hardware.

    Intel ITs evolving cloud computing strategy is based on growing the cloudfrom the inside out: building an internal cloud, then migrating to an externalcloud as the market matures and security and privacy concerns are addressed.Meanwhile, we are already taking advantage of SaaS for specific applicationswhere there are clear benefits.

    Applications Suitable for External Clouds

    Not all applications are suitable for external clouds today. Good candidates areapplications that do not provide a competitive advantage, are not mission-

    critical, and are not tightly integrated with other important applications. Tominimize security risks, they should not contain sensitive information. Ingeneral, the set of applications deemed to have low security risk should growover time as more sophisticated techniques to secure cloud-based applicationsare developed.

    Our current view of the key decision-making criteria is summarized in Table 1.We expect to re-evaluate these criteria over time as the market matures.

    Risks

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    The features that make cloud computing so appealing, combined with the factthat services are publicly accessible, can also lead to many potential risks.

    Risks for Public Cloud:

    Employee productivity applications and data that are stored onuser hard drives tend to have fast response times with little impact on theemployee. Internet applications may experience delays and not be ableto manage volumes of data. Service Level Agreements (SLAs) with thecloudcomputing vendors can provide response time, throughput, andother metrics that help protect the organization.

    Lack of availability there are risks related to having a criticalsoftware application programmed and managed by an outside entity. If a

    vendors software application ceases to function, the organization mayexperience financial losses as well as damage to its image and reputation.

    Confidentiality SAAS vendors may store data in a centralrepository. This repository may hold data from many different

    businesses, even competitors. The organization should determine if it isappropriate to store the type of information (client lists, pricing,intellectual property, etc.) on external servers.

    Integrity since data is stored on outside servers, the organization

    must ensure information integrity. Balancing controls, managinginformation stored on external servers, monitoring, and other controlsmust be used to protect the organization.

    Compliance information collected, stored, archived, and securedmust meet regulatory requirements.

    Cloud computing service delivery considerations:

    IT managers should take professional care and due diligencewhen evaluating cloud computing applications:

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    Service levels- your organization should determine if theoutsourced provider has professional, high performance infrastructuresthat can guarantee levels of performance delivery.

    Support user and technical support must be determined up front.

    Will first level user support be provided by their staff or yours?

    Redundancy organizations should have redundant solutions thatallow systems to continue operating even during single componentfailure. This includes the Internet software application as well as the

    organizations connectivity to the Internet.

    Contingency plans business continuity and disaster recoveryplans must be updated and tested on a regular basis.

    Private clouds IT departments have the administration costs andresponsibilities of acquiring, installing, managing, and securing datacenters.

    Security public and private clouds must ensure informationavailability, confidentiality, and integrity.

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    Drawbacks

    o Main drawback, especially when using cloud service at a relatively

    high level (development environment or SaaS instead of virtualmachines) is delivery through a web browser instead of runningwith native code

    Performance impacts (diminishing as technology improves)

    Lack of access to features of the operating system

    Restrictions on user interface (diminishing as technology

    improves)

    Other drawbacks are the same as for otherorganizations :

    Administration may be more difficult, at least at current stages of the field'sdevelopment

    Costs of using a virtual service may be higher than stand-alone servers forlarge projects

    Development tailored to a particular development environment such as GoogleApp Server or Windows Azure may limit portability

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    CONCERNS:

    Is Using the Cloud Information Security Suicidefor Enterprises?

    On the face of it, the apparent hacking of Sarah Palins Yahoo mail accountmay have hurt the clouds onward march into enterprise credibility. By usingservices in the cloud to hold corporate data, as opposed to within our corporate

    walls, the concern is we are automatically exposing the corporate to additionalrisk. And it is a concern we must take seriously. But this is far from the fullstory. Computer hacking is as old as computers, and social engineering as oldas, well, people.

    With thanks to the head of enterprise architecture of one of the organizationsIm collaborating with for sharing the link, heres a well written perspective on the hackitself. Ive also had a couple of colleagues mention, quite rightly, that this high

    profile event serves as a timely reminder for us to think very carefully aboutthe clouds enterprise viability.

    The argument often goes that by definition a service in the cloud hasubiquitous potential access for both the authorised and the hackers alike,whereas the corporate network has restricted access (to employees) and sohacking is intrinsically harder.

    The reality is somewhat different.

    In fact, when you assume any real level of connectivity (and which businesscan afford not to be connected), the security model of the Web is intrinsicallymore secure than the security model pre-Web most corporates have in placetoday ask your trusted security expert about application centric and moatsecurity compared with document centric and de-perimeterisation security.

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    Many years ago, the best and brightest security experts figured out that, whilethere are many levels of security (as they went on to describe in the Orange Book),if you want the best level of security over your data, you have to put yourcomputer in a bunker with cameras recording who uses it and whatever you doyou never ever, under any circumstances, connect it to a network.

    Back in the mainstream world, the technical aspects arent perhaps the mostimportant factors here. The real issue is not with the cloud, it is of course withus, the wetware.

    I.B.M. to Push Cloud Computing, UsingData From Afar

    I.B.M. plans to build a sizable business by bringing Google-style computing tomainstream corporate customers.

    The I.B.M. strategy, to be announced today, seeks to exploit the technical workand commercial interest in large data centers that can be run more efficiently,searched for information and programmed from remote locations over theInternet.

    This model of Internet-based supercomputing is known as cloud computingbecause vast stores of information and processing resources can be tappedfrom afar by a laptop personal computer, cellphone or other device.

    I.B.M. is calling its initiative Blue Cloud. Most of the basic software neededfor cloud computing is open source, meaning that the code is freely availableand can be modified by users. The hardware used in the data centers istypically many thousands of industry-standard server computers, powered by

    processors made by Intel orAdvanced Micro Devices

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    and produced by many hardware makers.

    But I.B.M., analysts say, is trying to position itself as a leader in the corporatemarket for cloud computing, which many specialists regard as the nextevolutionary step in information technology. The business strategy, they say, is

    to sell more I.B.M. hardware, software and services tailored for cloudcomputing. Starting in spring 2008, I.B.M. will offer versions of its servercomputers, including mainframes, that are adapted for cloud computing.

    The game plan, I.B.M. executives say, is similar to the one the companyfollowed in supporting Linux, an open-source operating system and analternative to Microsofts operating systems. I.B.M.s endorsement of Linux,which began in 2000 and included investments in technical development andmarketing, sped the adoption of that technology among corporate customers.

    To me, this feels like Linux in 2000, said William M. Zeitler, senior vicepresident in charge of the systems and technology group.

    I.B.M. now has 200 researchers working on cloud technology, and Mr. Zeitlersaid the company had a staged plan over the next three years that wouldinvolve a large investment, though he would not elaborate on the amount.

    Several customers, including corporations and government agencies, have beenworking with I.B.M. in pilot projects on cloud computing. Mr. Zeitler did notidentify the companies, but said, Large financial services companies are goingto be among the first to be interested.

    Companies with fast-growing data centers, like banks and securities firms, arefacing the same headaches as the large Internet companies, like Google andYahoo. Efficiency, power consumption and management costs are mounting.And companies of all kinds are increasingly adopting some of the technologies

    of Internet companies like searching, mobile commerce and communication,and collaboration tools like blogs, wikis and social networks.

    In recent years, I.B.M. has championed efforts to make data centers moreefficient and to centralize more computing tasks in the data centers, withdesktops and devices tapping in. These have had names like autonomic,utility and grid computing.

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    Those concepts and research efforts have made a contribution to cloudcomputing. Experts say tools have been added to spread computing tasksacross clusters of many machines and to make programming simpler.Advances likely to broaden the reach of cloud computing have often comefrom researchers tackling the challenges posed by Internet searches.

    In some ways, the cloud is a natural next step from the grid-utility model,said Frank Gens, an analyst at the research firm IDC. Whats different is theGoogle programming model, and that really opens things up. You dont haveto be a Stanford or Carnegie Mellon Ph.D. to program cloud applications.

    The software that I.B.M. is packaging in its cloud offering is called Hadoop,running on the Linux operating system. Hadoop is based on an open-sourcesearch project called Nutch, and an open-source version of GooglesMapReduce software for spreading complex computer tasks across clusters ofmachines.

    ALTIUS IT

    Cloud Computing Thunder and Lighteningon Your Horizon?

    Overview

    As organizations automate more and more of their manual processes,the Internet is increasingly becoming an important tool in the deliveryof IT services. Several years ago, organizations purchased softwareon CD-ROMs and DVD media. Today, users have the choice ofdownloading software from the Internet or using their browser toaccess software that runs outside the organization on Internetservers. The use of external software on Internet servers is called

    Software as a Service (SAAS).

    Instead of writing software for a workstation, software developers arenow writing software programs that run on Internet servers. Thissoftware may run on servers outside the organization on othercompanies data centers. Familiar examples include web sites such asAmazon.com and Salesforce.com.

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    In the past, individual applications ran in the Internet cloud. Now,entire data centers are moving to the cloud, accessible by a widerange of users.

    Cloud computing describes a grouping of service offerings thatincludes application software, data storage, and computing. Thecomputing can be delivered over the Internet (public cloudcomputing) or within an organization (private cloud computing).

    Some Major Firms providing Cloud Computing :-

    1. GOOGLE2. AMAZON3. IBM

    4. MICROSOFT5. SUN MICROSYSTEMS6. SALESFORCE.COM7. NIVIO.COM8. AT&T

    With cloud computing gaining moreimportance across the business communities,

    many companies have started making significant presence in the new business from the

    cloud computing business. The IT major Tata Consultancy Services is no exceptionwhich has been gaining more business opportunities

    The company, which is keen on making it big in the cloud computing business, said itwould probably put its cloud computing revenues separately.Many companies believe that cloud computing would be a feasible option for businesshouses for their IT requirements than some traditional methods.

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    Earlier, before cloud computing had arrived, if a company requires IT enabled servicesfor any of its division, it would buy a new hardware, licence for software and lastly theimplementation of it would drain much of the companys financial resources. But now,with the arrival of cloud computing the enterprise customers need not have to own the

    infrastructure for their IT requirements. Instead they can rent the concerned ITinfrastructure from the provider for which they pay only for the amount of resourcesutilized. The cloud computing thereby reduces companies capital expenses.

    GOOGLES CLOUD

    What is Google Cloud Print?

    In Google Chrome OS, all applications are web apps. Therefore, in designing theprinting experience for Google Chrome OS, we want to make sure printing from web

    apps is as natural as printing from traditional native apps is today. Additionally, with theproliferation of web-connected mobile devices such as those running Google ChromeOS and other mobile operating systems, we don't believe it is feasible to build andmaintain complex print subsystems and print drivers for each platform. In fact, even the

    print subsystems and drivers on existing PC operating systems leave a lot of room forimprovement.

    Our goal is to build a printing experience that enables any app (web, desktop, ormobile) on any device to print to any printer anywhere in the world.

    This goal is accomplished through the use of a cloud print service. Apps no longer rely

    on the local operating system (and drivers) to print. Instead, as shown in the diagrambelow, apps (whether they be a native desktop/mobile app or a web app) use GoogleCloud Print to submit and manage print jobs. Google Cloud Print is then responsible forsending the print job to the appropriate printer, with the particular options the userselected, and providing job status to the app.

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    Google Cloud Print Components

    Here's a brief summary of each component in the diagram above.

    Applications

    Any type of application can use Google Cloud Print, including web apps (such as

    Gmail) and native apps (such as a desktop word processor or an Android/iPhone app).These apps call Google Cloud Print APIs. They can use these APIs to collect thenecessary data to show their own user interface for custom print options or simply usethe common print dialog that Google Cloud Print will provide (see the section on "UserInterface," later in this page). There are also APIs for querying print job status. We willhave more details to share about which Google web apps will integrate with GoogleCloud Print in the coming months. Additionally, when the APIs are available, third-

    party app developers will be able to use Google Cloud Print in their web, desktop, andmobile apps as well.

    Google Cloud Print Service

    Google Cloud Print is a web service offered by Google. We expect other entities toprovide their own cloud print services as well. Users associate printers with their GoogleAccount via the service. Printers are treated in much the same way as documents are inGoogle Docs. Therefore, it is very easy to share printers with your coworkers, friends,and family anywhere in the world. No need for complex network setups to make printsharing work! In addition to associating printers with a user's Google Account, the

    capabilities of each particular printer model are stored so they can be shown to the userto select appropriate options when submitting a print job. Once the service receives a

    print job, it sends it to the printer. It also receives regular updates on the status of theprint job which it makes available to the app.

    User Interface

    As mentioned earlier, Google is developing a common print dialog (web UI) that appscan use to allow the user to select the printer and appropriate print options. Similarly, the

    printer/job status and management UI will enable users to view which printers they have

    registered (or have been shared with them), print job status, etc. We will have moredetails to share about these UIs in the coming months.

    Printers

    And, finally, the number one question people ask is, "How do the printers communicatewith Google Cloud Print?" The answer is, "It depends on whether the printer is a cloud-aware printer or a legacy printer."

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    Cloud-aware Printer

    The ideal experience is for your printer to have native support for connecting to cloudprint services. Under this model, the printer has no need for a PC connection of any kindor for a print driver. The printer is simply registered with one or more cloud printservices and awaits print jobs. Cloud-aware printers don't exist yet, but one of our main

    goals in publishing this information at an early stage is to begin engaging industryleaders and the community in developing cloud-aware printers and the necessary open

    protocols for these printers to communicate with cloud print services. We believe cloudprinting has tremendous benefits for end users and for the industry and is essential,given the rapid shift toward cloud-based applications and data storage. We also believethat the only way that the benefits of cloud printing can be realized is if the protocols areopen, freely implementable, and, when possible, based on existing industry standards.We expect there to be multiple cloud print services, and users should have a choice inwhich services they use and which printers they can connect to a service. Stay tuned formore details. We are confident that cloud-aware printers will soon be a reality.

    Legacy Printer

    Every printer in existence today falls into this category. (This situation will change, ofcourse, when someoneperhaps you?updates the firmware to make the printer cloud-aware.) This category includes printers connected directly to PCs (for example, via USBcable) as well as networked printers (Ethernet or WiFi). This category also includes therecent crop of "web-connected" printers that provide users with access to certain webservices (such as maps and movie tickets) directly from the on-printer LCD. While theseare "web connected," they are not cloud-aware printers in the way we describe above

    because they don't know how to talk to a cloud print service to get print jobs, etc. Wewant users to be able to print to legacy printers via Google Cloud Print. This isaccomplished through the use of a proxy, a small piece of software that sits on a PCwhere the printer is installed. The proxy takes care of registering the printer with GoogleCloud Print and awaiting print jobs from the service. When a job arrives, it submits the

    print job to the printer using the PC operating system's native print stack and sends jobstatus back to the printer.

    Currently, we are developing a proxy for Windows and will support Mac and Linux lateron as well. To help users avoid the trouble of having to install yet another piece of

    software on their PCs, we will distribute the proxy with Google Chrome. So, by simplyinstalling Google Chrome on their PC and enabling the feature (it is off by default),users will be able to print via Google Cloud Print. An obvious downside to this approachis that the PC must be powered on and connected to the Internet in order for print jobs toget to the proxy (and hence the printer). This current requirement is why we are excitedabout working with the industry to build native support for cloud print services into their

    printers. Weare also hoping some clever folks in the community will build proxies-in-a-

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    box (like routers with print server abilities) so users get all the benefits of the proxywithout needing to leave their PC powered on.

    Google Chrome OS printing

    Google Chrome OS will use Google Cloud Print for all printing. There is no print stackand there are no printer drivers on Google Chrome OS!

    When users print from a web app that directly integrates with Google Cloud Print, thenthat works as described earlier with no involvement from Chrome OS. When users are

    printing a web page that is not making use of Google Cloud Print (such as a boardingpass, movie tickets, a magazine article, etc.), the app that is printing is the GoogleChrome browser on Chrome OS. In this case, Google Chrome on Chrome OS is a nativeapp that uses Google Cloud Print and common print dialog. The content to be printed is

    uploaded to the Google Cloud Print along with the job ticket information and then sentto the printer. More details are in the design document.

    Cloud Computing By IBM

    Overview - selected tab,ServicesSystems

    Consulting & DesignResource library

    Our planet is getting smarter. IT infrastructure is reaching a breaking point. As theplanet gets smarter, demands on IT will grow.

    Cloud computing is here

    This new IT delivery model can significantly reduce enterprise IT costs &complexities while improving workload optimization and service delivery.Cloud computing is massively scalable, provides a superior user experience,and is characterized by new, internet-driven economics.

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    Information technology is changing rapidly, and now forms an invisible layerthat increasingly touches every aspect of our lives. Power grids, traffic control,healthcare, water supplies, food and energy, along with most of the world'sfinancial transactions, now depend on information technology.

    Cloud workloads from IBMIBM has cloud options. Whether you choose to build private clouds, use theIBM cloud, or create a hybrid cloud that includes both, these secure workloadsolutions provide superior service management and new choices fordeployment.

    Development and Testing

    IBM Smart Business Development and Test on the IBM Cloud: Accelerateyour application development and test efforts with this security-rich, cloud-

    based enterprise development environment on the IBM Cloud. Thisinfrastructure as a service (IaaS) solution can help you reduce costs, shortencycle times and improve quality.

    IBM Smart Business Development and Test Cloud: Now available forinstallation behind your corporate firewall. Realize cost savings and faster timeto value in your private cloud environment.

    Information solutions

    IBM Smart Analytics Cloud: Discover real-time business insights. Access andanalyze multi-source data with this on-site analytics solution for the enterprise.

    IBM Smart Business Storage Cloud: Manage massive information demandswhile reducing costs and enabling enterprise-wide file sharing andcollaboration.

    IBM Information Archive: Archive all types of information (e.g., regulatory)controlling IT costs, managing risk and improving productivity.

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    Amazon Elastic Compute Cloud(Amazon EC2)

    Amazon Elastic Compute Cloud (Amazon EC2) is a web service that providesresizable compute capacity in the cloud. It is designed to make web-scalecomputing easier for developers.

    Amazon EC2s simple web service interface allows you to obtain andconfigure capacity with minimal friction. It provides you with complete controlof your computing resources and lets you run on Amazons proven computingenvironment. Amazon EC2 reduces the time required to obtain and boot new

    server instances to minutes, allowing you to quickly scale capacity, both upand down, as your computing requirements change. Amazon EC2 changes theeconomics of computing by allowing you to pay only for capacity that youactually use. Amazon EC2 provides developers the tools to build failureresilient applications and isolate themselves from common failure scenarios.

    This page contains the following categories of information. Click to jumpdown:

    Amazon EC2 Functionality Service Highlights Features Instance Types Operating Systems and Software

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    Pricing Resources Detailed Description Intended Usage and Restrictions

    Amazon EC2 Functionality

    Amazon EC2 presents a true virtual computing environment, allowing you touse web service interfaces to launch instances with a variety of operatingsystems, load them with your custom application environment, manage yournetworks access permissions, and run your image using as many or few

    systems as you desire.

    To use Amazon EC2, you simply:

    Select a pre-configured, templated image to get up and runningimmediately. Or create an Amazon Machine Image (AMI) containingyour applications, libraries, data, and associated configuration settings.

    Configure security and network access on your Amazon EC2 instance. Choose which instance type(s) and operating system you want, then start,

    terminate, and monitor as many instances of your AMI as needed, usingthe web service APIs or the variety of management tools provided. Determine whether you want to run in multiple locations, utilize static IP

    endpoints, or attach persistent block storage to your instances. Pay only for the resources that you actually consume, like instance-hours

    or data transfer.

    Service Highlights

    Elastic Amazon EC2 enables you to increase or decrease capacity withinminutes, not hours or days. You can commission one, hundreds or eventhousands of server instances simultaneously. Of course, because this is allcontrolled with web service APIs, your application can automatically scaleitself up and down depending on its needs.

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    Completely Controlled You have complete control of your instances. Youhave root access to each one, and you can interact with them as you would anymachine. You can stop your instance while retaining the data on your boot

    partition and then subsequently restart the same instance using web serviceAPIs. Instances can be rebooted remotely using web service APIs. You also

    have access to console output of your instances.

    Flexible You have the choice of multiple instance types, operating systems,and software packages. Amazon EC2 allows you to select a configuration ofmemory, CPU, instance storage, and the boot partition size that is optimal foryour choice of operating system and application. For example, your choice ofoperating systems includes numerous Linux distributions, Microsoft WindowsServer and OpenSolaris.

    Designed for use with other Amazon Web Services Amazon EC2 works inconjunction with Amazon Simple Storage Service (Amazon S3), AmazonSimpleDB and Amazon Simple Queue Service (Amazon SQS) to provide acomplete solution for computing, query processing and storage across a widerange of applications.

    Reliable Amazon EC2 offers a highly reliable environment wherereplacement instances can be rapidly and predictably commissioned. Theservice runs within Amazons proven network infrastructure and datacenters.

    The Amazon EC2 Service Level Agreement commitment is 99.95%availability for each Amazon EC2 Region.

    Secure Amazon EC2 provides numerous mechanisms for securing yourcompute resources.

    Amazon EC2 includes web service interfaces to configure firewallsettings that control network access to and between groups of instances.

    When launching Amazon EC2 resources within Amazon Virtual PrivateCloud (Amazon VPC), you can isolate your compute instances by

    specifying the IP range you wish to use, and connect to your existing ITinfrastructure using industry-standard encrypted IPsec VPN.

    For more information on Amazon EC2 security refer to ourAmazon WebServices: Overview of Security Process document.

    Inexpensive Amazon EC2 passes on to you the financial benefits ofAmazons scale. You pay a very low rate for the compute capacity you

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    actually consume. See Amazon EC2 Instance Purchasing Options for a moredetailed description.

    On-Demand Instances On-Demand Instances let you pay for compute

    capacity by the hour with no long-term commitments. This frees youfrom the costs and complexities of planning, purchasing, and maintaininghardware and transforms what are commonly large fixed costs into muchsmaller variable costs. On-Demand Instances also remove the need to buysafety net capacity to handle periodic traffic spikes.

    Reserved Instances Reserved Instances give you the option to make alow, one-time payment for each instance you want to reserve and in turnreceive a significant discount on the hourly usage charge for that

    instance. After the one-time payment for an instance, that instance isreserved for you, and you have no further obligation; you may choose torun that instance for the discounted usage rate for the duration of yourterm, or when you do not use the instance, you will not pay usage chargeson it.

    Spot Instances Spot Instances allow customers to bid on unusedAmazon EC2 capacity and run those instances for as long as their bidexceeds the current Spot Price. The Spot Price changes periodically

    based on supply and demand, and customers whose bids meet or exceedit gain access to the available Spot Instances. If you have flexibility inwhen your applications can run, Spot Instances can significantly loweryour Amazon EC2 costs. See here for moredetails on Spot Instances.

    Features

    Amazon EC2 provides a number of powerful features for building scalable,failure resilient, enterprise class applications, including:

    Amazon Elastic Block Store Amazon Elastic Block Store (EBS) offers

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    persistent storage for Amazon EC2 instances. Amazon EBS volumesprovide off-instance storage that persists independently from the life ofan instance. Amazon EBS volumes are highly available, highly reliablevolumes that can be leveraged as an Amazon EC2 instances boot

    partition or attached to a running Amazon EC2 instance as a standard

    block device. When used as a boot partition, Amazon EC2 instances canbe stopped and subsequently restarted, enabling you to only pay for thestorage resources used while maintaining your instances state. AmazonEBS volumes offer greatly improved durability over local Amazon EC2instance stores, as Amazon EBS volumes are automatically replicated onthe backend (in a single Availability Zone). For those wanting even moredurability, Amazon EBS provides the ability to create point-in-timeconsistent snapshots of your volumes that are then stored in Amazon S3,

    and automatically replicated across multiple Availability Zones. Thesesnapshots can be used as the starting point for new Amazon EBSvolumes, and can protect your data for long term durability. You can alsoeasily share these snapshots with co-workers and other AWS developers.See Amazon Elastic Block Store for more details on this feature.

    1. Multiple Locations Amazon EC2 provides the ability to place instancesin multiple locations. Amazon EC2 locations are composed of Regionsand Availability Zones. Availability Zones are distinct locations that are

    engineered to be insulated from failures in other Availability Zones andprovide inexpensive, low latency network connectivity to otherAvailability Zones in the same Region. By launching instances inseparate Availability Zones, you can protect your applications fromfailure of a single location. Regions consist of one or more AvailabilityZones, are geographically dispersed, and will be in separate geographicareas or countries. The Amazon EC2 Service Level Agreementcommitment is 99.95% availability for each Amazon EC2 Region.

    Amazon EC2 is currently available in four regions: US East (NorthernVirginia), US West (Northern California), EU (Ireland), and Asia Pacific(Singapore).

    Elastic IP Addresses Elastic IP addresses are static IP addressesdesigned for dynamic cloud computing. An Elastic IP address isassociated with your account not a particular instance, and you controlthat address until you choose to explicitly release it. Unlike traditional

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    static IP addresses, however, Elastic IP addresses allow you to maskinstance or Availability Zone failures by programmatically remappingyour public IP addresses to any instance in your account. Rather thanwaiting on a data technician to reconfigure or replace your host, orwaiting for DNS to propagate to all of your customers, Amazon EC2

    enables you to engineer around problems with your instance or softwareby quickly remapping your Elastic IP address to a replacement instance.In addition, you can optionally configure the reverse DNS record of anyof your Elastic IP addresses by filling out this form.

    Amazon Virtual Private Cloud Amazon VPC is a secure and seamlessbridge between a companys existing IT infrastructure and the AWScloud. Amazon VPC enables enterprises to connect their existinginfrastructure to a set of isolated AWS compute resources via a VirtualPrivate Network (VPN) connection, and to extend their existingmanagement capabilities such as security services, firewalls, andintrusion detection systems to include their AWS resources. See AmazonVirtual Private Cloud for more details.

    Amazon CloudWatch Amazon CloudWatch is a web service thatprovides monitoring for AWS cloud resources, starting with AmazonEC2. It provides you with visibility into resource utilization, operational

    performance, and overall demand patternsincluding metrics such asCPU utilization, disk reads and writes, and network traffic. To useAmazon CloudWatch, simply select the Amazon EC2 instances thatyoud like to monitor; within minutes, Amazon CloudWatch will beginaggregating and storing monitoring data that can be accessed using webservice APIs or Command Line Tools. See Amazon CloudWatch formore details.

    3) Auto Scaling Auto Scaling allows you to automatically scale yourAmazon EC2 capacity up or down according to conditions you define.With Auto Scaling, you can ensure that the number of Amazon EC2instances youre using scales up seamlessly during demand spikes tomaintain performance, and scales down automatically during demandlulls to minimize costs. Auto Scaling is particularly well suited forapplications that experience hourly, daily, or weekly variability in usage.Auto Scaling is enabled by Amazon CloudWatch and available at no

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    additional charge beyond Amazon CloudWatch fees. See Auto Scalingfor more details.

    Elastic Load Balancing Elastic Load Balancing automaticallydistributes incoming application traffic across multiple Amazon EC2

    instances. It enables you to achieve even greater fault tolerance in yourapplications, seamlessly providing the amount of load balancing capacityneeded in response to incoming application traffic. Elastic LoadBalancing detects unhealthy instances within a pool and automaticallyreroutes traffic to healthy instances until the unhealthy instances have

    been restored. You can enable Elastic Load Balancing within a singleAvailability Zone or across multiple zones for even more consistentapplication performance. Amazon CloudWatch can be used to capture aspecific Elastic Load Balancers operational metrics, such as requestcount and request latency, at no additional cost beyond Elastic LoadBalancing fees. See Elastic Load Balancing for more details.

    High Performance Computing (HPC) Clusters Customers with complexcomputational workloads such as tightly coupled parallel processes, orwith applications sensitive to network performance, can achieve the samehigh compute and network performance provided by custom-builtinfrastructure while benefiting from the elasticity, flexibility and costadvantages of Amazon EC2. Cluster Compute Instances have beenspecifically engineered to provide high-performance network capabilityand can be programmatically launched into clusters allowingapplications to get the low-latency network performance required fortightly coupled, node-to-node communication. Cluster ComputeInstances also provide significantly increased network throughputmaking them well suited for customer applications that need to performnetwork-intensive operations. Learn more about Cluster ComputeInstances as well as other AWS services that can be used for HPC

    Applications.

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    Instance Types

    Standard Instances

    Instances of this family are well suited for most applications.

    Small Instance (Default) 1.7 GB of memory, 1 EC2 Compute Unit (1virtual core with 1 EC2 Compute Unit), 160 GB of local instance storage,32-bit platform

    Large Instance 7.5 GB of memory, 4 EC2 Compute Units (2 virtual coreswith 2 EC2 Compute Units each), 850 GB of local instance storage, 64-

    bit platform Extra Large Instance 15 GB of memory, 8 EC2 Compute Units (4 virtual

    cores with 2 EC2 Compute Units each), 1690 GB of local instancestorage, 64-bit platform

    High-Memory Instances

    Instances of this family offer large memory sizes for high throughputapplications, including database and memory caching applications.

    High-Memory Extra Large Instance 17.1 GB memory, 6.5 ECU (2 virtualcores with 3.25 EC2 Compute Units each), 420 GB of local instance

    storage, 64-bit platform High-Memory Double Extra Large Instance 34.2 GB of memory, 13 EC2

    Compute Units (4 virtual cores with 3.25 EC2 Compute Units each), 850GB of local instance storage, 64-bit platform

    High-Memory Quadruple Extra Large Instance 68.4 GB of memory, 26EC2 Compute Units (8 virtual cores with 3.25 EC2 Compute Units each),1690 GB of local instance storage, 64-bit platform

    High-CPU Instances

    Instances of this family have proportionally more CPU resources than memory(RAM) and are well suited for compute-intensive applications.

    High-CPU Medium Instance 1.7 GB of memory, 5 EC2 Compute Units(2 virtual cores with 2.5 EC2 Compute Units each), 350 GB of local

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    instance storage, 32-bit platform

    High-CPU Extra Large Instance 7 GB of memory, 20 EC2 ComputeUnits (8 virtual cores with 2.5 EC2 Compute Units each), 1690 GB oflocal instance storage, 64-bit platform

    Cluster Compute Instances

    Instances of this family provide proportionally high CPU with increasednetwork performance and are well suited for High Performance Compute(HPC) applications and other demanding network-bound applications. Learnmore about use of this instance type for HPC applications.

    Cluster Compute Quadruple Extra Large