Cloud Computing Services: Compute Power
Cloud Computing Services: Compute Power
computers. You only pay for what you use. The company providing these services is referred to
as a cloud provider. Some example providers are Microsoft, Amazon, and Google.
The cloud provider is responsible for the physical hardware required to execute your work, and
for keeping it up-to-date. The computing services offered tend to vary by cloud provider.
However, typically they include:
You need to have a basic understanding of some of the services it provides. Let's briefly discuss
the two most common services that all cloud providers offer – compute power and storage.
Compute power
When you send an email, book a reservation on the Internet, pay a bill online, or even take this
Microsoft Learn module you're interacting with cloud-based servers that are processing each
request and returning a response. As a consumer, we're all dependent on the computing services
provided by the various cloud providers that make up the Internet.
When you build solutions using cloud computing, you can choose how you want work to be
done based on your resources and needs. For example, if you want to have more control and
responsibility over maintenance, you could create a virtual machine (VM). A VM is an
emulation of a computer - just like your desktop or laptop you're using now. Each VM includes
an operating system and hardware that appears to the user like a physical computer running
Windows or Linux. You can then install whatever software you need to do the tasks you want to
run in the cloud.
The difference is that you don't have to buy any of the hardware or install the OS. The cloud
provider runs your virtual machine on a physical server in one of their datacenters - often sharing
that server with other VMs (isolated and secure). With the cloud, you can have a VM ready to go
in minutes at less cost than a physical computer.
VMs aren't the only computing choice - there are two other popular
options: containers and serverless computing.
The open-source project, Docker, is one of the leading platforms for managing containers.
Docker containers provide an efficient, lightweight approach to application deployment because
they allow different components of the application to be deployed independently into different
containers. Multiple containers can be run on a single machine, and containers can be moved
between machines. The portability of the container makes it easy for applications to be deployed
in multiple environments, either on-premises or in the cloud, often with no changes to the
application.
The serverless model differs from VMs and containers in that you only pay for the processing
time used by each function as it executes. VMs and containers are charged while they're running
- even if the applications on them are idle. This architecture doesn't work for every app - but
when the app logic can be separated to independent units, you can test them separately, update
them separately, and launch them in microseconds, making this approach the fastest option for
deployment.
Storage
Most devices and applications read and/or write data. Here are some examples:
The advantage to using cloud-based data storage is you can scale to meet your needs. If you find
that you need more space to store your movie clips, you can pay a little more and add to your
available space. In some cases, the storage can even expand and contract automatically - so you
pay for exactly what you need at any given point in time.
Summary
Every business has different needs and requirements. Cloud computing is flexible and cost-
efficient, which can be beneficial to every business, whether it's a small start-up or a large
enterprise.
Cloud computing isn't an all-or-nothing service approach. Companies can choose to use
the cloud to store their data and execute logic as much, or as little, as necessary to fulfill
their business requirements. Existing businesses might choose a gradual movement to
save money on infrastructure and administration costs (referred to as "lift and shift"),
while a new company might start in the cloud.
This also allows for better cost prediction. Prices for individual resources and services are
provided so you can predict how much you will spend in a given billing period based on
your expected usage. You can also perform analysis based on future growth using
historical usage data tracked by your cloud provider.
It's scalable
You can increase or decrease the resources and services used based on the demand or workload
at any given time. Cloud computing supports both vertical and horizontal scaling depending on
your needs.
Vertical scaling, also known as "scaling up", is the process of adding resources to increase the
power of an existing server. Some examples of vertical scaling are: adding more CPUs, or
adding more memory.
Horizontal scaling, also known as "scaling out", is the process of adding more servers that
function together as one unit. For example, you have more than one server processing incoming
requests.
Scaling can be done manually or automatically based on specific triggers such as CPU
utilization or the number of requests and resources that can be allocated or de-
allocated in minutes.
It's elastic
As your workload changes due to a spike or drop in demand, a cloud computing system can
compensate by automatically adding or removing resources.
For example, imagine your website is featured in a news article, leading to a spike in traffic
overnight. Since the cloud is elastic, it automatically allocates more computing resources to
handle the increased traffic. When the traffic begins to normalize, the cloud automatically de-
allocates the additional resources to minimize cost.
Another example is if you are running an application used by employees, you can have
the cloud automatically add resources for the peak operating hours during which most
people access the application, and remove the resources at the usual end of the day.
It's current
When you use the cloud, you're able to focus on what matters: building and deploying
applications. Cloud usage eliminates the burdens of maintaining software patches, hardware
setup, upgrades, and other IT management tasks. All of this is automatically done for you to
ensure you're using the latest and greatest tools to run your business.
Additionally, the computer hardware is maintained and upgraded by the cloud provider.
For example, if a disk fails, the disk will be replaced by the cloud provider. If a new
hardware update becomes available, you don't have to go through the process of
replacing your hardware. The cloud provider will ensure that the hardware updates are
made available to you automatically.
It's reliable
When you're running a business, you want to be confident your data is always going to be there.
Cloud computing providers offer data backup, disaster recovery, and data replication services to
make sure your data is always safe. In addition, redundancy is often built into cloud services
architecture so if one component fails, a backup component takes its place. This is referred to
as fault tolerance and it ensures that your customers aren't impacted when a disaster occurs.
It's global
Cloud providers have fully redundant datacenters located in various regions all over the globe.
This gives you a local presence close to your customers to give them the best response time
possible no matter where in the world they are.
You can replicate your services into multiple regions for redundancy and locality, or select a
specific region to ensure you meet data-residency and compliance laws for your customers.
It's secure
Think about how you secure your datacenter. You have physical security – who can access the
building, who can operate the server racks, and so on. You also have digital security – who can
connect to your systems and data over the network.
Cloud providers offer a broad set of policies, technologies, controls, and expert technical skills
that can provide better security than most organizations can otherwise achieve. The result is
strengthened security, which helps to protect data, apps, and infrastructure from potential threats.
Let us talk about digital security. You want only authorized users to be able to log into
virtual machines or storage systems running in the cloud. Cloud providers offer tools
that help you mitigate security threats, and you must use these tools to protect the
resources you use.
Summary
Cloud computing makes running a business easier. It's cost-effective, scalable, elastic,
current, reliable, and secure. This means you're able to spend more time on what
matters and less time managing the underlying details.
When selecting a cloud provider to host your solutions, you should understand how that provider
can help you comply with regulations and standards. Some questions to ask about a potential
provider include:
How compliant is the cloud provider when it comes to handling sensitive data?
How compliant are the services offered by the cloud provider?
How can I deploy my own cloud-based solutions to scenarios that have accreditation or
compliance requirements?
What terms are part of the privacy statement for the provider?
Compliance Offerings
The following list provides details about some of the compliance offerings available.
Criminal Justice Information Services (CJIS). Any US state or local agency that wants
to access the FBI's CJIS database is required to adhere to the CJIS Security Policy. Azure
is the only major cloud provider that contractually commits to conformance with the CJIS
Security Policy, which commits Microsoft to adhering to the same requirements that law
enforcement and public safety entities must meet.
Cloud Security Alliance (CSA) STAR Certification. Azure, Intune, and Microsoft
Power BI have obtained STAR Certification, which involves a rigorous independent third-
party assessment of a cloud provider's security posture. This STAR certification is based
on achieving ISO/IEC 27001 certification and meeting criteria specified in the Cloud
Controls Matrix (CCM). This certification demonstrates that a cloud service provider:
o Conforms to the applicable requirements of ISO/IEC 27001.
o Has addressed issues critical to cloud security as outlined in the CCM.
o Has been assessed against the STAR Capability Maturity Model for the management of
activities in CCM control areas.
General Data Protection Regulation (GDPR). As of May 25, 2018, a European privacy
law — GDPR — is in effect. GDPR imposes new rules on companies, government
agencies, non-profits, and other organizations that offer goods and services to people in the
European Union (EU), or that collect and analyze data tied to EU residents. The GDPR
applies no matter where you are located.
Microsoft was the first global cloud solution provider (CSP) to receive this certification
across all three classifications.
Economies of scale
1 minute
Economies of scale is the ability to do things more efficiently or at a lower-cost per unit when
operating at a larger scale. This cost advantage is an important benefit in cloud computing.
Cloud providers such as Microsoft, Google, and Amazon are large businesses leveraging the
benefits of economies of scale. These providers can then pass the savings on to their customers.
These savings are apparent to end users in a number of ways, one of which is the ability
to acquire hardware at a lower cost. Cloud providers can also make deals with local
governments and utilities to get tax savings, lowering the price of power, cooling, and
high-speed network connectivity between sites. Cloud providers are then able to pass
on these benefits to end users in the form of lower prices than what you could achieve
on your own.
In the past, companies needed to acquire physical premises and infrastructure to start
their business. There was a substantial up-front cost in hardware and infrastructure to
start or grow a business. Cloud computing provides services to customers without
significant upfront costs or equipment setup time.
Server costs
This area includes all hardware components and the cost of supporting them. When
purchasing servers, make sure to design fault tolerance and redundancy, such as server
clustering, redundant power supplies, and uninterruptible power supplies. When a
server needs to be replaced or added to a datacenter, you need to pay for the
computer. This can affect your immediate cash flow because you must pay for the server
up front.
Storage costs
This area includes all storage hardware components and the cost of supporting it. Based
on the application and level of fault tolerance, centralized storage can be expensive. For
larger organizations, you can create tiers of storage where more expensive fault‐tolerant
storage is used for critical applications and lower expense storage is used for lower
priority data.
Network costs
This is the cost to back up, copy, or archive data. Options might include setting up a
backup to or from the cloud. There's an upfront cost for the hardware and additional
costs for backup maintenance and consumables like tapes.
Along with server fault tolerance and redundancy, you need to plan for how to recover
from a disaster and continue operating. Your plan should consist of creating a data
recovery site. It could also include backup generators. Most of these are upfront costs,
especially if you build a data recovery site, but there's an additional ongoing cost for the
infrastructure and its maintenance.
These are costs for construction and building equipment, as well as future renovation
and remodeling costs that may arise as demands grow. Additionally, this infrastructure
incurs operational expenses for electricity, floor space, cooling, and building
maintenance.
Technical personnel
While not a capital expenditure, the personnel required to work on your infrastructure
are specific to on-premises datacenters. You will need the technical expertise and
workforce to install, deploy, and manage the systems in the datacenter and at the data
recovery site.
Cloud computing can bill in various ways, such as the number of users or CPU usage
time. However, billing categories can also include allocated RAM, I/O operations per
second (IOPS), and storage space. Plan for backup traffic and data recovery traffic to
determine the bandwidth needed.
The subscription (pay-per-use) model is a computing billing method that is designed for
both organizations and users. The organization or user is billed for the services used,
typically on a recurring basis. You can scale, customize, and provision computing
resources, including software, storage, and development platforms. For example, when
using a dedicated cloud service, you could pay based on server hardware and usage.
Benefits of CapEx
With capital expenditures, you plan your expenses at the start of a project or budget
period. Your costs are fixed, meaning you know exactly how much is being spent. This is
appealing when you need to predict the expenses before a project starts due to a
limited budget.
Benefits of OpEx
Demand and growth can be unpredictable and can outpace expectation, which is a
challenge for the CapEx model as shown in the following graph.
With the OpEx model, companies wanting to try a new product or service don't need to
invest in equipment. Instead, they pay as much or as little for the infrastructure as
required.
OpEx is particularly appealing if the demand fluctuates or is unknown. Cloud services are
often said to be agile. Cloud agility is the ability to rapidly change an IT infrastructure to
adapt to the evolving needs of the business. For example, if your service peaks one
month, you can scale to demand and pay a larger bill for the month. If the following
month the demand drops, you can reduce the used resources and be charged less. This
agility lets you manage your costs dynamically, optimizing spending as requirements
change.
There are three different cloud deployment models. A cloud deployment model defines
where your data is stored and how your customers interact with it – how do they get to
it, and where do the applications run? It also depends on how much of your own
infrastructure you want or need to manage.
Public cloud
This is the most common deployment model. In this case, you have no local hardware to manage
or keep up-to-date – everything runs on your cloud provider's hardware. In some cases, you can
save additional costs by sharing computing resources with other cloud users.
Businesses can use multiple public cloud providers of varying scale. Microsoft Azure is an
example of a public cloud provider.
Advantages
High scalability/agility – you don't have to buy a new server in order to scale
Pay-as-you-go pricing – you pay only for what you use, no CapEx costs
You're not responsible for maintenance or updates of the hardware
Minimal technical knowledge to set up and use - you can leverage the skills and
expertise of the cloud provider to ensure workloads are secure, safe, and highly available
A common use case scenario is deploying a web application or a blog site on hardware
and resources that are owned by a cloud provider. Using a public cloud in this scenario
allows cloud users to get their website or blog up quickly, and then focus on
maintaining the site without having to worry about purchasing, managing or
maintaining the hardware on which it runs.
Disadvantages
Not all scenarios fit the public cloud. Here are some disadvantages to think about:
There may be specific security requirements that cannot be met by using public cloud
There may be government policies, industry standards, or legal requirements which
public clouds cannot meet
You don't own the hardware or services and cannot manage them as you may want to
Unique business requirements, such as having to maintain a legacy application might be
hard to meet
Private cloud
In a private cloud, you create a cloud environment in your own datacenter and provide self-
service access to compute resources to users in your organization. This offers a simulation of a
public cloud to your users, but you remain completely responsible for the purchase and
maintenance of the hardware and software services you provide.
Advantages
You can ensure the configuration can support any scenario or legacy application
You have control (and responsibility) over security
Private clouds can meet strict security, compliance, or legal requirements
Disadvantages
Some reasons teams move away from the private cloud are:
You have some initial CapEx costs and must purchase the hardware for startup and
maintenance
Owning the equipment limits the agility - to scale you must buy, install, and setup new
hardware
Private clouds require IT skills and expertise that's hard to come by
A use case scenario for a private cloud would be when an organization has data that
cannot be put in the public cloud, perhaps for legal reasons. An example scenario may
be where government policy requires specific data to be kept in-country or privately.
A private cloud can provide cloud functionality to external customers as well, or to
specific internal departments such as Accounting or Human Resources.
Hybrid cloud
A hybrid cloud combines public and private clouds, allowing you to run your applications in the
most appropriate location. For example, you could host a website in the public cloud and link it
to a highly secure database hosted in your private cloud (or on-premises datacenter).
This is helpful when you have some things that cannot be put in the cloud, maybe for
legal reasons. For example, you may have some specific pieces of data that cannot be
exposed publicly (such as medical data) which needs to be held in your private
datacenter. Another example is one or more applications that run on old hardware that
can't be updated. In this case, you can keep the old system running locally, and connect
it to the public cloud for authorization or storage.
Advantages
You can keep any systems running and accessible that use out-of-date hardware or an
out-of-date operating system
You have flexibility with what you run locally versus in the cloud
You can take advantage of economies of scale from public cloud providers for services
and resources where it's cheaper, and then supplement with your own equipment when
it's not
You can use your own equipment to meet security, compliance, or legacy scenarios
where you need to completely control the environment
Disadvantages
It can be more expensive than selecting one deployment model since it involves some
CapEx cost up front
It can be more complicated to set up and manage
Summary
Cloud computing is flexible and gives you the ability to choose how you want to deploy
it. The cloud deployment model you choose depends on your budget, and on your
security, scalability, and maintenance needs.
When talking about cloud computing, there are three major categories. It's important to
understand them because they are used in conversation, documentation, and training.
Note
When using IaaS, ensuring that a service is up and running is a shared responsibility: the
cloud provider is responsible for ensuring the cloud infrastructure is functioning
correctly; the cloud customer is responsible for ensuring the service they are using is
configured correctly, is up to date, and is available to their customers. This is referred to
as the shared responsibility model.
Test and development. Teams can quickly set up and dismantle test and
development environments, bringing new applications to market faster. IaaS
makes scaling development and testing environments, fast and economical.
SaaS is software that is centrally hosted and managed for the end customer. It is usually based on
an architecture where one version of the application is used for all customers, and licensed
through a monthly or annual subscription. Office 365, Skype, and Dynamics CRM Online are
perfect examples of SaaS software.
Cost and Ownership
TABLE 1
Upfront There are no upfront There are no upfront costs. Users Users have no
costs costs. Users pay only for pay only for what they consume. upfront costs; they
what they consume. pay a subscription,
typically on a monthly
or annual basis.
User The user is responsible The user is responsible for the Users just use the
ownership for the purchase, development of their own application software;
installation, applications. However, they are not they are not
configuration, and responsible for managing the responsible for any
management of their server or infrastructure. This allows maintenance or
own software, operating the user to focus on the application management of that
systems, middleware, or workload they want to run. software.
and applications.
Cloud The cloud provider is The cloud provider is responsible The cloud provider is
provider responsible for ensuring for operating system management, responsible for the
ownership that the underlying cloud network, and service configuration. provision,
infrastructure (such as Cloud providers are typically management, and
virtual machines, responsible for everything apart maintenance of the
storage, and networking) from the application that a user application software.
is available for the user. wants to run. They provide a
complete managed platform on
which to run the application.
Management responsibilities
One thing to understand is that these categories are layers on top of each other. For
example, PaaS adds a layer on top of IaaS by providing a level of abstraction. The
abstraction has the benefit of hiding the details that you may not care about, so that
you can get to coding quicker. However, one aspect of the abstraction is that you have
less control over the underlying hardware. The following illustration shows a list of
resources that you manage and that your service provider manages in each cloud
service category.
Copy
First column, on-premises, shows all elements managed by you. Second, infrastructure
as a service, moves virtualization, servers, storage, and networking to the cloud
provider. Third, platform as a service, moves runtime, middleware, and OS to the
cloud provider. And fourth, software as a service, moves all elements to the cloud
provider, with applications and data being the last elements moving.
IaaS requires the most user management of all the cloud services. The user is responsible
for managing the operating systems, data, and applications.
PaaS requires less user management. The cloud provider manages the operating
systems, and the user is responsible for the applications and data they run and store.
SaaS requires the least amount of management. The cloud provider is responsible for
managing everything, and the end user just uses the software.
n this module, you've learned about cloud computing, what it is and what its key
characteristics are. Here are some of the things you covered.
Different types of cloud models that are available and the considerations of using
those different models.
Some of the key terms and concepts such as high availability, agility, elasticity,
fault tolerance, and CapEx vs. OpEx.
The different cloud services available, the benefits of using the different types,
and the management responsibilities under each service type.
Cloud models such as public, private and hybrid, and what the key characteristics
of each model are.
The different types of cloud service available: IaaS, PaaS, and SaaS; what the key
characteristics of each service are and when you would choose one over the other
Microsoft Azure
Azure is Microsoft's cloud computing platform. Azure provides over 100 services that
enable you to do everything from running your existing applications on virtual machines
to exploring new software paradigms such as intelligent bots and mixed reality.
Compute services such as VMs and containers that can run your applications
Database services that provide both relational and NoSQL choices
Identity services that help you authenticate and protect your users
Networking services that connect your datacenter to the cloud, provide high
availability or host your DNS domain
Storage solutions that can accommodate massive amounts of both structured
and unstructured data
AI and machine-learning services can analyze data, text, images, comprehend
speech, and make predictions using data — changing the world of agriculture,
healthcare, and much more.