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    VIRTUALIZATION & CLOUDCOMPUTING

    Lecture # 22

    CSE 423

    The Law of Cloudonomics

    Specifying SLA, Defining Licensing Models

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    Cloud Computing

    • Cloud computing is particularly valuable because it shifts capitalexpenditures into operating expenditures.

    • It also shifts risk aay from an organi!ation and onto the cloudprovider.

    • Cloud computing presents ne opportunities to users anddevelopers because it is based on the paradigm of a sharedmultitenant utility.

    • " cloud is an infrastructure that can be partitioned andprovisioned# and resources are pooled and virtuali!ed. If thecloud is available to the public on a pay$as$you$go basis# then thecloud is a public cloud# and the service is described as a utility

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     %hese are the uni&ue characteristics of an ideal cloud computingmodel'

    ( Scalability' )ou have access to unlimited computer resources asneeded.

    ( Elaticity' )ou have the ability to right$si!e resources asre&uired.

    ( L!" barrier t! etry' )ou can gain access to systems for asmall investment.

    ( Utility' " pay$as$you$go model matches resources to need on anongoing basis. .

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    Companies become cloud computing providers for several reasons'

    ( Pr!$t' %he economies of scale can makethis a pro*table business.

    ( O%tii'ati!' %he infrastructure already exists and isn+t fully utili!ed.

    $ "ma!on ,eb Services.

    ( Strate)ic' " cloud computing platform extends the company+sproducts and defends their franchise.

    $ -icrosoft+s ,indos "!ure latform.

    ( E*tei!+ " branded cloud computing platform can extend customer

    relationships by o/ering additional service options.$ various I0- cloud services.

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    ( Preece'Establish a presence in a market before a largecompetitor can emerge.

    $ 1oogle "pp Engine allos a developer to scaleanapplication immediately. or 1oogle# its oce applications

    can be rolled out &uickly and to large audiences.

    ( Plat,!r+ " cloud computing provider can become a hubmaster at the center of many IS+s 5Independent Softareendor6 o/erings.

      $ %he customer relationship management providerSalesorce.com has a development platform called

    orce.com that is a aaS o/ering.

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    -. Utility er/ice c!t le e/e t0!u)0 t0ey c!t !re.7tilities charge a premium for their services# but customers save

    money by not paying for services that they aren+t using.

    2. O1ea tru% ,!recati).

      %he ability to provision and tear don resources 5de$provision6captures revenue and loers costs.

    3. T0e %ea4 !, t0e u i e/er )reater t0a t0e u !, t0e%ea4.

      " cloud can deploy less capacity because the peaks of individual

    tenants in a shared system are averaged over time by the group oftenants.

    .

     %he la of cloudonomics

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    5. A))re)ate ea i !!t0er t0a ii/iual.-ulti$tenancy also tends to average the variability intrinsic in

    individual demand. ,ith a more predictable demand and less variation#clouds can run at higher utili!ation rates than captive systems. %hisallos cloud systems to operate at higher eciencies and loer costs.

    6. A/era)e uit c!t are reuce by itributi) $*e c!t !/er!re uit !, !ut%ut.

      Cloud vendors have a si!e that allos them to purchase resources atsigni*cantly reduced prices.

    7. Su%eri!rity i uber i t0e !t i%!rtat ,act!r i t0ereult !, a c!bat 8Claue"it'9.

      ,einman argues that a large cloud+s si!e has the ability to repelbotnets and 88oS attacks better than smaller systems do.

     %he la of cloudonomics

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    :. S%ace1tie i a c!tiuu 8Eitei;Mi4!"4i9.  %he ability of a task to be accomplished in the cloud using parallel

    processing allos real$time business to respond &uicker to businessconditions and accelerates decision making providing a measurableadvantage.

    . D!?t %ut all y!ur e)) i !e ba4et.

      9arge cloud providers ith geographically dispersed sites orldide

    therefore achieve reliability rates that are hard for private systems to

    achieve.

     %he la of cloudonomics

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    -@. A !bect at ret te t! tay at ret 8Ne"t!9. 

    rivate datacenters tend to be located in places herethe company or unit as founded or ac&uired. Cloudproviders can site their datacenters in hat are called

    :green*eld sites.;

      " green*eld siteis one that is environmentally friendly'locations that are on a netork backbone# have cheapaccess to poer and cooling# here land is inexpensive#

    and the environmental impact is lo.

     %he la of cloudonomics

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     9as of 0ehavioralCloudonomics

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    • ?. Pe!%le ic!ut ,uture ri4a ,a/!r itat )rati$cati!.

    @.Pe!%le ,a/!r t0i) t0at are

    ,ree.

    • A. Pe!%le 0a/e t0e ee ,!rtatu.

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    Meauri) cl!uc!%uti) c!t

    •  %he cost of a cloud computingdeployment is roughly estimated tobe

      CostC978 D 57nitCostC978 x5Fevenue G CostC97866

    • here the unit cost is usually de*nedas the cost of a machine instance perhour or another resource.

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    •  %o compare your cost bene*t ith aprivate cloud# you ill ant tocompare the value you determine in

    the previous e&uation ith the samecalculation'

    • Cost8"%"CEH%EF D

    57nitCost8"%"CEH%EF x 5Fevenue G5Cost8"%"CEH%EF7tili!ation66

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    •  %he Cost8"%"CEH%EF consists of the summation of the costof each of the individual systems ith all the associatedresources# as follos'

    • Cost8"%"CEH%EF D

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    •  %he costs associated ith the cloud model are calculated rather di/erently.Each resource has its on speci*c cost and many resources can beprovisioned independently of one another. In theory# therefore#

    • the CostC978 is better represented by the e&uation'

    CostC978 D

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    e ) ce )M!el

    ,hen you purchase shrink$rapped softare# you are using that softarebased on a licensing agreement called a E79" or End 7ser 9icense"greement. %he E79" may specify that the softare meets the folloingcriteria'

    • ( It is yours to on.

    • ( It can be installed on a single or multiple machines.

    • ( It allos for one or more connections.

    • ( It has hatever limit the IS5ie%eet !,t"are /e!r9 hasplaced on its softare.

    In most instances# the purchase price of the softare is directly tied to the

    E79".

    t

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    a%ter +Uertai)

    Cl!u Arc0itecture• IH %LIS CL"%EF• 7sing the cloud computing stack to

    describe di/erent models

    • 7nderstanding ho platforms andvirtual appliances are used

    • 9earning ho cloud communications

    ork• 8iscovering the ne orld of the cloud

    client

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    • ne property that di/erentiates cloud computing is referredto as composability# hich is the ability to build applicationsfrom component

      parts.

    " platform is a cloud computing service that is bothhardare and softare. latforms are used to create morecomplex softare. irtual appliances are an importantexample of a platform# and they are

    becoming a very important standard cloud computing

    deployment obMect.

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    Cloud computing re&uires some standard protocols ith hich di/erent layers of hardare#softare#and clients can communicate ith one another. -any of these protocols arestandard Internet protocols.

    Cloud computing relies on a set of protocols needed to manage interprocess communicationsthat have

    been developed over the years. %he most commonly used set of protocols uses N-9 as themessaging

    format# the Simple bMect "ccess rotocol 5S"6 protocol as the obMect model# and a set ofdiscovery

    and description protocols based on the ,eb Services 8escription 9anguage 5,S896 to manage

    transactions.

    Some completely ne clients are under development that are speci*cally meant to connect tothe cloud.

     %hese clients have as their focus cloud applications and services# and are often hardened andmore

    securely connected. %o examples presented are Oolicloud and 1oogle Chrome S. %heyrepresent a

    ne client model that is likely to have considerable impact.

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    Exploring the CloudComputing Stack

    • Composability

    • Infrastructure

    latforms• irtual "ppliances

    • Communication rotocols

    • "pplications

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    Composability

    • " composable component must be'

    ( M!ular+ It i a el,1c!taiea ie%eet uit t0at ic!!%erati/e reuable are%laceable.

    ( Statele+ A traacti! ie*ecute "it0!ut re)ar t! !t0ertraacti! !r re=uet.

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    •  %he essence of a service oriented design is that services are constructedfrom a set of modules using standard communications and serviceinterfaces.

    •  "n example of a set of idely used standards describes the servicesthemselves in terms of the ,eb Services 8escription 9anguage 5,S896#data exchange beteen services using some form of N-9# and the

    communications beteen the services using the S" protocol. %here

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    Infrastructure

    -ost large Infrastructure as a Service 5IaaS6 providers rely on virtual machinetechnology to deliver servers that can run applications.

    irtual servers described in terms of a machine image or instance havecharacteristics that often can be described in terms of real servers

    delivering a certain number of microprocessor 5C76 cycles# memoryaccess# and netork bandidth to customers.

     irtual machines are containers that are assigned speci*c resources. %hesoftare that runs in the virtual machines is hat de*nes the utility of thecloud computing system.

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     ortion of cloud computing

    stack that is designated asthe server

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    latforms

    • latform in the cloud is a softarelayer that is used to create higherlevels of service.

    • ( Salesforce.com+s orce.comlatform

    • ( ,indos "!ure latform

    • ( 1oogle "pps and the 1oogle"ppEngine

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    " virtual appliance is softare that installs as middleare onto avirtual machine.

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    irtual "ppliances

    • irtual appliances are softare installed on virtual serversPapplication modules that are meant to run a particularmachine instance or image type.

    •  " virtual appliance is a platform instance. %herefore# virtualappliances occupy the middle of the cloud computing stack