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Cloud Computing: Introduction, Evolution

Cloud Computing can be defined as delivering computing power (CPU, RAM, Network
Speeds, Storage OS software) a service over a network (usually on the internet) rather than
physically having the computing resources at the customer location.

Cloud computing is just like carrying data and information for different users and allows to use
its service with minimal cost.

The term “Cloud” came from a network design that was used by network engineers to represent
the location of various network devices and there inter-connection. The shape of this network
design was like a cloud.

With increase in computer and Mobile user’s, data storage has become a priority in all fields.
Large and small scale businesses today thrive on their data & they spent a huge amount of
money to maintain this data. It requires a strong IT support and a storage hub. Not all businesses
can afford high cost of in-house IT infrastructure and back up support services. For them Cloud
Computing is a cheaper solution. Perhaps its efficiency in storing data, computation and less
maintenance cost has succeeded to attract even bigger businesses as well.

Cloud computing decreases the hardware and software demand from the user’s side. The only
thing that user must be able to run is the cloud computing systems interface software, which can
be as simple as Web browser, and the Cloud network takes care of the rest. We all have
experienced cloud computing at some instant of time, some of the popular cloud services we
have used or we are still using are mail services like gmail, hotmail or yahoo etc.

While accessing e-mail service our data is stored on cloud server and not on our computer. The
technology and infrastructure behind the cloud is invisible. It is less important whether cloud
services are based on HTTP, XML, Ruby, PHP or other specific technologies as far as it is user
friendly and functional. An individual user can connect to cloud system from his/her own
devices like desktop, laptop or mobile.

Cloud computing harnesses small business effectively having limited resources, it gives small
businesses access to the technologies that previously were out of their reach. Cloud computing
helps small businesses to convert their maintenance cost into profit. Let’s see how?

In an in-house IT server, you have to pay a lot of attention and ensure that there are no flaws into
the system so that it runs smoothly. And in case of any technical glitch you are completely
responsible; it will seek a lot of attention, time and money for repair. Whereas, in cloud
computing, the service provider takes the complete responsibility of the complication and the
technical faults.
Benefits of Cloud Computing
The potential for cost saving is the major reason of cloud services adoption by many
organizations. Cloud computing gives the freedom to use services as per the requirement and
pay only for what you use. Due to cloud computing it has become possible to run IT operations
as a outsourced unit without much in-house resources.

Following are the benefits of cloud computing:

1. Lower IT infrastructure and computer costs for users

2. Improved performance
3. Fewer Maintenance issues
4. Instant software updates
5. Improved compatibility between Operating systems
6. Backup and recovery
7. Performance and Scalability
8. Increased storage capacity
9. Increase data safety

Types of Clouds
There are four different cloud models that you can subscribe according to business needs:

1. Private Cloud: Here, computing resources are deployed for one particular
organization. This method is more used for intra-business interactions. Where the
computing resources can be governed, owned and operated by the same organization.
2. Community Cloud: Here, computing resources are provided for a community and
organizations.
3. Public Cloud: This type of cloud is used usually for B2C (Business to Consumer) type
interactions. Here the computing resource is owned, governed and operated by
government, an academic or business organization.
4. Hybrid Cloud: This type of cloud can be used for both type of interactions – B2B
(Business to Business) or B2C ( Business to Consumer). This deployment method is
called hybrid cloud as the computing resources are bound together by different clouds .

The evolution of cloud computing can be bifurcated into three basic phases:

1. The Idea Phase: This phase incepted in the early 1960s with the emergence of utility
and grid computing and lasted till pre-internet bubble era. Joseph Carl Robnett Licklider
was the founder of cloud computing.
2. The Pre-cloud Phase: The pre-cloud phase originated in 1999 and extended to 2006.
In this phase the internet as the mechanism to provide Application as Service.
3. The Cloud Phase: The much talked about real cloud phase started in the year 2007
when the classification of IaaS, PaaS, and SaaS got formalized. The history of cloud
computing has witnessed some very interesting breakthroughs launched by some of the
leading computer/web organizations of the world.
 The trend toward cloud computing started in the late 1980s with the concept of grid
computing when, for the first time, a large number of systems were applied to a single problem,
usually scientific in nature and requiring exceptionally high levels of parallel computation. In
Europe, long distance optical networks are used to tie multiple universities into a massive
computing grid in order that resources could be shared and scaled for large scientific
calculations.

Grid computing provided a virtual pool of computation resources but it’s different than cloud
computing. Grid computing specifically refers to leveraging several computers in parallel to
solve a particular, individual problem, or to run a specific application. Cloud computing, on the
other hand, refers to leveraging multiple resources, including computing resources, to deliver a
unified “service” to the end user.

In grid computing, the focus is on moving a workload to the location of the needed computing
resources, which are mostly remote and are readily available for use. Usually a grid is a cluster
of servers on which a large task could be divided into smaller tasks to run in parallel. From this
point of view, a grid could actually be viewed as just one virtual server. Grids also require
applications to conform to the grid software interfaces.

In a cloud environment, computing and extended IT and business resources, such as servers,
storage, network, applications and processes, can be dynamically shaped or carved out from the
underlying hardware infrastructure and made available to a workload. In addition, while a cloud
can provision and support a grid, a cloud can also support non-grid environments, such as a
three-tier Web architecture running traditional or Web 2.0 applications

In the 1990s, the concept of virtualization was expanded beyond virtual servers to higher levels
of abstraction—first the virtual platform, including storage and network resources, and
subsequently the virtual application, which has no specific underlying infrastructure. Utility
computing offered clusters as virtual platforms for computing with a metered business model.

More recently software as a service (SaaS) has raised the level of virtualization to the
application, with a business model of charging not by the resources consumed but by the value of
the application to subscribers. The concept of cloud computing has evolved from the concepts of
grid, utility and SaaS. It is an emerging model through which users can gain access to their
applications from anywhere, at any time, through their connected devices. These applications
reside in massively scalable data centers where compute resources can be dynamically
provisioned and shared to achieve significant economies of scale.

Companies can choose to share these resources using public or private clouds, depending on
their specific needs. Public clouds expose services to customers, businesses and consumers on
the Internet. Private clouds are generally restricted to use within a company behind a firewall and
have fewer security exposures as a result. The strength of a cloud is its infrastructure
management, enabled by the maturity and progress of virtualization technology to manage and
better utilize the underlying resources through automatic provisioning, re-imaging, workload
rebalancing, monitoring, systematic change request handling and a dynamic and automated
security and resiliency platform.

As more enterprises add cloud computing the level of applications is migrating toward more
mission critical and SaaS will become a mainstay of IT strategies.

A number of companies, including Google, Microsoft, Amazon, and IBM, have built enormous
datacenter-based computing capacity all over the world to support their Web service offerings
(search, instant messaging, web-based retail). With this computing infrastructure in place these
companies are already poised to offer new cloud-based software applications.

Large enterprise software solutions, such as ERP (Enterprise Resource Planning) applications,
have traditionally only been affordable to very big enterprises with big IT budgets. However,
companies that sell these solutions are finding they can reach small to medium businesses by
making their very expensive, very complex applications available as Internet-based software
services. This ability of SaaS to deliver expensive applications at affordable will continue to
accelerate.

Technology & Services Models for cloud computing: IaAs, PaAS, SaAS

IaaS (Infrastructure as a Service)

IaaS (Infrastructure As A Service) is one of the fundamental service model of cloud
computing alongside PaaS( Platform as a Service). It provides access to computing resources in a
virtualized environment “the cloud” on internet. It provides computing infrastructure like virtual
server space, network connections, bandwidth, load balancers and IP addresses. The pool of
hardware resource is extracted from multiple servers and networks usually distributed across
numerous data centers. This provides redundancy and reliability to IaaS.

IaaS (Infrastructure as a service) is a complete package for computing. For small scale
businesses who are looking for cutting cost on IT infrastructure, IaaS is one of the solutions.
Annually a lot of money is spent in maintenance and buying new components like hard-drives,
network connections, external storage device etc. which a business owner could have saved for
other expenses by using IaaS.

PaaS (Platform as a Service)

Platform as a service, is referred as PaaS, it provides a platform and environment to
allow developers to build applications and services. This service is hosted in the cloud and
accessed by the users via internet.

To understand in a simple terms, let compare this with painting a picture, where you are
provided with paint colors, different paint brushes and paper by your school teacher and you just
have to draw a beautiful picture using those tools.
 PaaS services are constantly updated & new features added. Software developers, web
developers and business can benefit from PaaS. It provides platform to support application
development. It includes software support and management services, storage, networking,
deploying, testing, collaborating, hosting and maintaining applications.

SaaS (Software as a Service)

SaaS or software as a service is a software distribution model in which applications are
hosted by a vendor or service provider and made available to customers over a network
(internet). SaaS is becoming an increasingly prevalent delivery model as underlying technologies
that supports Service Oriented Architecture (SOA) or Web Services. Through internet this
service is available to users anywhere in the world.

Traditionaly, software application needed to be purchased upfront &then installed it onto

your computer. SaaS users on the other hand, instead of purchasing the software subscribes to it,
usually on monthly basisvia internet.

Anyone who needs an access to a particular piece of software can be subscribe as a user,
whether it is one or two people or every thousands of employees in a corporation. SaaS is
compatible with all internet enabled devices.

Many important tasks like accounting, sales, invoicing and planning all can be performed
using SaaS.

Cloud Characteristics, Cloud Computer Characteristics

Cloud entails an ever-expanding list of tools and techniques, but the key characteristics of
cloud computing remain the same.

Cloud computing is the on-demand availability of computer system resources, especially

data storage (cloud storage) and computing power, without direct active management by the
user. Large clouds often have functions distributed over multiple locations, each location being a
data center. Cloud computing relies on sharing of resources to achieve coherence and economies
of scale, typically using a “pay-as-you-go” model which can help in reducing capital expenses
but may also lead to unexpected operating expenses for unaware users.

Value proposition

Advocates of public and hybrid clouds note that cloud computing allows companies to
avoid or minimize up-front IT infrastructure costs. Proponents also claim that cloud computing
allows enterprises to get their applications up and running faster, with improved manageability
and less maintenance, and that it enables IT teams to more rapidly adjust resources to meet
fluctuating and unpredictable demand, providing the burst computing capability: high computing
power at certain periods of peak demand.
 AWS was the first to popularize cloud computing as an alternative to on-premises
infrastructure when it began selling computing resources and storage instances in 2006. Google
and Microsoft followed soon after. Today, cloud computing extends from infrastructure to
software-as-a-service models and everything in between, including AI, containers, serverless
computing, databases, IoT, dedicated networking, analytics, business apps and much more.

Cloud computing’s characteristic of self-service provisioning goes hand in hand with on-
demand computing capabilities. Instead of waiting for new servers to be delivered to a private
data center, developers can select the resources and tools they need typically through a cloud
provider’s self-service portal and build right away. An admin sets policies to limit what IT and
development teams can run, but within those guardrails, employees have the freedom to build,
test and deploy apps as they see fit.

There are basically 5 essential characteristics of Cloud Computing.

Broad network access:- The Computing services are generally provided over standard
networks and heterogeneous devices.

On-demand self-services:- The Cloud computing services does not require any human
administrators, user them-selves are able to provision, monitor and manage computing resources
as needed.

Rapid elasticity:- The Computing services should have IT resources that are able to scale out
and in quickly and on as needed basis. Whenever the user require services it is provided to him
and it is scale out as soon as its requirement gets over.

Resource pooling:- The IT resource (e.g., networks, servers, storage, applications, and
services) present are shared across multiple applications and occupant in an uncommitted
manner. Multiple clients are provided service from a same physical resource.

Measured service:- The resource utilization is tracked for each application and occupant, it
will provide both the user and the resource provider with an account of what has been used. This
is done for various reasons like monitoring billing and effective use of resource.

Cloud computing shares characteristics with:

Client–server model: Client–server computing refers broadly to any distributed application

that distinguishes between service providers (servers) and service requestors (clients).

Computer bureau: A service bureau providing computer services, particularly from the
1960s to 1980s.
Grid computing: A form of distributed and parallel computing, whereby a ‘Super and virtual
computer’ is composed of a cluster of networked, loosely coupled computers acting in concert to
perform very large tasks.

Fog computing: Distributed computing paradigm that provides data, compute, storage and
application services closer to the client or near-user edge devices, such as network routers.
Furthermore, fog computing handles data at the network level, on smart devices and on the end-
user client-side (e.g. mobile devices), instead of sending data to a remote location for processing.

Mainframe computer: Powerful computers used mainly by large organizations for critical
applications, typically bulk data processing such as census; industry and consumer statistics;
police and secret intelligence services; enterprise resource planning; and financial transaction
processing.

Utility computing: The “packaging of computing resources, such as computation and

storage, as a metered service similar to a traditional public utility, such as electricity.”

Peer-to-peer: A distributed architecture without the need for central coordination. Participants
are both suppliers and consumers of resources (in contrast to the traditional client-server model).

Green computing: Study and practice of environmentally sustainable computing or IT.

Cloud sandbox: A live, isolated computer environment in which a program, code or file can
run without affecting the application in which it runs.

Cloud Computer essentials, Benefits

Cloud computing is the on-demand availability of computer system resources, especially
data storage (cloud storage) and computing power, without direct active management by the
user. Large clouds often have functions distributed over multiple locations, each location being a
data center. Cloud computing relies on sharing of resources to achieve coherence and economies
of scale, typically using a “pay-as-you-go” model which can help in reducing capital expenses
but may also lead to unexpected operating expenses for unaware users.

Essentials

Broad network access:- Capabilities are available over the network and accessed through
standard mechanisms that promote use by heterogeneous thin or thick client platforms (e.g.,
mobile phones, tablets, laptops, and workstations).
On-demand self-service:- A consumer can unilaterally provision computing capabilities,
such as server time and network storage, as needed automatically without requiring human
interaction with each service provider.

Resource pooling:- The provider’s computing resources are pooled to serve multiple
consumers using a multi-tenant model, with different physical and virtual resources dynamically
assigned and reassigned according to consumer demand. There is a sense of location
independence in that the customer generally has no control or knowledge over the exact location
of the provided resources but may be able to specify location at a higher level of abstraction
(e.g., country, state, or datacenter). Examples of resources include storage, processing, memory,
and network bandwidth.

Rapid elasticity:- Capabilities can be elastically provisioned and released, in some cases
automatically, to scale rapidly outward and inward commensurate with demand. To the
consumer, the capabilities available for provisioning often appear to be unlimited and can be
appropriated in any quantity at any time.

Measured service:- Cloud systems automatically control and optimize resource use by
leveraging a metering capability at some level of abstraction appropriate to the type of service
(e.g., storage, processing, bandwidth, and active user accounts). Resource usage can be
monitored, controlled, and reported, providing transparency for both the provider and consumer
of the utilized service.

Benefits
1) Improved collaboration:- Cloud applications improve collaboration by allowing groups of
people to quickly and easily share information in the cloud via shared storage.

2) Back-up and restore data:- Once the data is stored in the cloud, it is easier to get back-up
and restore that data using the cloud.

3) Excellent accessibility:- Cloud allows us to quickly and easily access store information
anywhere, anytime in the whole world, using an internet connection. An internet cloud
infrastructure increases organization productivity and efficiency by ensuring that our data is
always accessible.

4) Mobility:- Cloud computing allows us to easily access all cloud data via mobile.

5) Low maintenance cost:- Cloud computing reduces both hardware and software maintenance
costs for organizations.

6) Services in the pay-per-use model:- Cloud computing offers Application Programming

Interfaces (APIs) to the users for access services on the cloud and pays the charges as per the
usage of service.
7) Unlimited storage capacity:- Cloud offers us a huge amount of storing capacity for storing
our important data such as documents, images, audio, video, etc. in one place.

8) Data security:- Data security is one of the biggest advantages of cloud computing. Cloud
offers many advanced features related to security and ensures that data is securely stored and
handled.

Disadvantages of Cloud Computing

A list of the disadvantage of cloud computing is given below –

1) Vendor lock-in:- Vendor lock-in is the biggest disadvantage of cloud computing.

Organizations may face problems when transferring their services from one vendor to another.
As different vendors provide different platforms, that can cause difficulty moving from one
cloud to another.

2) Internet Connectivity:- As you know, in cloud computing, every data (image, audio, video,
etc.) is stored on the cloud, and we access these data through the cloud by using the internet
connection. If you do not have good internet connectivity, you cannot access these data.
However, we have no any other way to access data from the cloud.

3) Security:- Although cloud service providers implement the best security standards to store
important information. But, before adopting cloud technology, you should be aware that you will
be sending all your organization’s sensitive information to a third party, i.e., a cloud computing
service provider. While sending the data on the cloud, there may be a chance that your
organization’s information is hacked by Hackers.

4) Limited Control:- As we know, cloud infrastructure is completely owned, managed, and

monitored by the service provider, so the cloud users have less control over the function and
execution of services within a cloud infrastructure.

Business Advantages of Cloud Computing

Cloud computing is where data is stored, managed and processed on a network of servers
hosted remotely on the internet. It has become highly popular with businesses because it offers
considerable savings together with high security, enormous capacity and a host of managed
services. Cloud hosting provides businesses with many advantages and in this post, we’ll take a
look at ten of the most important ones.

1. Cloud hosting saves you money:- The bottom line for any business looking to
adopt a new technology is whether it offers value for money and a good return on
investment. What’s great about cloud computing is that you don’t need your own
hardware as everything is hosted on your provider’s servers. This means savings can be
made on the cost of hardware and, in addition, you can dispense with the costs of running
 your own data centre. You won’t need to pay for space, power, physical security,
insurance and air-conditioning or need to cover the costs of ongoing maintenance.

2. Instantly scalable resources and pay as you go pricing:- If you have your
own data centre and need to increase computing resources, you’ll need to buy, install and
configure an expensive new server. If you only need that capacity to cover a short-term
demand, it leaves you with two problems. Firstly, you’re buying something that may lay
redundant for most of the time and, secondly, if that demand comes unexpectedly, you
might not get the server up and running in time to deal with it.

With cloud computing, scalability comes built in. If you need extra resources because of an
unexpected peak in website traffic, you can increase your computing capacity instantly. If that
peak only lasts for a day or two you can scale down as demand decreases. And, as you are
charged on a pay as you go basis, you only pay for the extra resources you have used. There is no
need to upgrade permanently to a bigger package or hire a new server. In this way, cloud
provides increased agility and cost-effective resourcing.

3. Strategic competitive advantage:- Deployment time in cloud computing is

virtually zero and applications that are critical for growth and success can be online
almost instantly, giving you a strategic competitive advantage over competitors who have
not yet adopted cloud technology.

In addition, the scalability mentioned above means that smaller companies who would
normally be at a disadvantage against larger companies with greater in-house capacity, now find
themselves on a level playing field without the need to invest heavily in their own data centres.

4. High Availability:- As businesses become reliant on applications to run their critical

operations, downtime can be disastrous. Server failure can result in companies coming to
a complete standstill and getting back online can be a challenging and sometimes
longwinded process. Losses can be significant.

Cloud hosting, however, removes the possibility of server failure causing downtime. A cloud
environment is engineered to deliver predictable and consistent performance with guaranteed
100% uptime. This is because clients are hosted on virtual machines that, in the event of an issue,
can be migrated between the clustered server. The cloud’s hyper-converged design guards
against everything from hard disk failure to an entire server failure, enabling mission-critical
applications to be available all the time.

5. Lightning fast performance:- In order to stay competitive, cloud service providers

need to continually update their technology to meet the demands of their customers. As a
result, cloud computing offers high-performance servers with technology such as
powerful CPUs and super fast SSD drives.

In addition, load balancing is used to route client requests in a way that maximises speed and
capacity utilisation. In this way, when servers are busy, the load is distributed so that no single
server suffers from performance problems – and with so many servers at their disposal, a cloud
provider can always ensure that performance is consistently optimised.

6. Get new apps running quicker:-Before the advent of cloud computing, it could
take a long time to get new applications running smoothly. Cloud-based applications,
however, have significantly reduced the time required for successful execution. Most
cloud-based applications can be used instantly after signup.

This offers many advantages to businesses. One, in particular, is that businesses who migrate
to the cloud can be benefitting from AI and machine learning applications within hours of
signing up.

7. Increased security:- With cloud hosting, your business is protected against hacking,
infection and internal data theft. Cloud providers are required to comply with a range of
stringent security regulations in order to protect their customers’ data. This includes the
use of robust firewall technology that features intrusion prevention systems and in-flow
virus protection. These detect and isolate threats before they reach your server. You can
even extend your office into the cloud with extensive VPN features.

8. More flexible working:- Cloud computing provides greater flexibility in how

employees work. As it is internet based, staff can access files both in and out of the
workplace, enabling them to work remotely or in the office. Many companies are using
this to give employees more flexible working conditions and to cut down on the amount
of office space they need. In order to cut costs, many local councils have massively
reduced office space expenditure by allowing staff to work from home and by using a
hot-desking system on the days they come into the office.

Staff can access the company’s system using web-enabled devices such as smartphones and
laptops and can collaborate in real-time with others by sharing synchronised files and using
online conferencing. Many businesses now have a ‘bring your own device (BYOD)’ policy
which is backed up by the use of a logical access authentication protocol to ensure security.

9. Environmental friendly:- Moving your system to the cloud means that you won’t
need your own data centre and can reduce your own carbon footprint significantly. You
won’t need to power the servers or keep them cool. You won’t even need data centre
space which needs to be lit.

However, there are more environmental benefits than simply offloading your carbon
footprint to your provider. Once you have migrated to the cloud, you’ll find that economies of
scale mean that your provider can use energy in a much more efficient way and that the energy
needed to run your systems is much less than it would be on-site. In this way, cloud computing
reduces the overall impact on the environment.
 10.The cloud is future enabled:- We’ve already mentioned that cloud’s scalability
puts smaller companies on a level playing field with bigger ones. In the future, this is
going to be even more important. With the growth of the Internet of Things, the amount
of big data that businesses are collecting and processing is going to increase
exponentially.

Big data analytics provides vital information for driving business development and those
companies who have the resources to carry it out are the ones who will gain most. Cloud
computing is by far the most cost-effective option for storing and processing enormous quantities
of data. In addition, it provides the easy deployment of the applications needed to carry out this
processing.

Business Models for Engaging cloud Vendors

Software as a Service, SaaS

In SaaS, multiple users are provided access to the application software hosted on the server by
the service provider. Users can access and interact with the cloud applications via the Internet,
using interfaces such as web browsers, without the need to install any applications on their own
systems. In Saas, software is provided as a service via the Internet and the service is priced on a
pay-per-use basis. In Saas model, users do not manage or monitor the infrastructure components
such as network, platform, operating system and storage devices. Users are only authorized to
change configuration/structure settings specific to the application provided as a service.

Platform as a Service, PaaS

The service provider delivers the users a computing platform where they can develop and run
their own applications using programming languages, software databases, services and tools
provided by the service provider and also provides supplementary services. In PaaS model, users
are not authorized to control or manage the servers, operating systems, storage spaces and other
components that make up the platform infrastructure. Users’ authority is limited to adjustments
related to the software transferred to the cloud and configuration settings of the platform the
software runs on.

Infrastructure as a Service, IaaS

In IaaS model, users can configure processing, storage, networks and other fundamental
computing resources required for running applications and install the operating system and
applications required. Users are not fully authorized to manage and control the physical
infrastructure. However, users can control the system at the level of storage and operating system
and manage specific network components. IaaS model is referred to as”Hardware as a service,
HaaS” in some sources.
Cloud computing infrastructure and business models are categorized based on being shared or
specific to a single organization, being stored internally or externally, clients’ authority to
interact with the architectural infrastructure of the service and capacity of customization to
clients’ needs. These business models are assessed by users in terms of characteristics such as
cost, level of user control on the system and scalability. Cloud computing should certainly be
considered as a revolutionary innovation in terms of internet use, but as in all new systems, it
contains challenges and disadvantages besides its advantages. Upon reviewing the infrastructure
and service models briefly explained above, it can be claimed that the major problem in cloud
computing is “data security”. It is a matter of concern for an organization or an individual to
store their information and data in a third party service provider’s system. Therefore, the security
risks arising out of these sharing and remotely accessed systems should be considered cautiously.
In this way, each organization/individual can determine the most appropriate cloud infrastructure
and service model for them and reconfigure their computing system affordably to comply with
technology.

Issues and Challenges in Cloud Based Business Models

Cloud Computing Issues & Challenges – Cloud computing is a common term you hear
about on and off. And professionals use it without even knowing about the actual concept. So to
put it in simple words, cloud computing is storing, accessing, and managing huge data and
software applications over the internet. In this technology the entire data is secured by firewall
networks. You can use the software without using your computer’s hard drive as the software
and data is installed in world wide data centres.

The cloud technology is used by many people in their daily lives. Using web based email
services or preparing any document over the internet is a common example of the cloud
technology. In the IT industry, there are three different types of cloud computing such as
infrastructure as a service (IaaS), platform as a service (PaaS), Software as a service (SaaS). All
these types of cloud technologies are being used for the different kind of services. Cloud
technology is very useful in business development as it brings astonishing results in a timely
manner.

However, there is a minor gap between the success and failure in businesses. Selection of the
right technology takes your business to new heights while a few mistakes land your business in
troubles. Every technology comes with a baggage of some pros and cons. Similarly, cloud
computing too comes with its share of issues despite being core strength of some business
industries. It also can create some major problems under some rare circumstances. issues and
challenges of cloud computing are characterized as ghosts in the cloud. Let us talk in brief about
some real life ghosts of cloud computing.

1. Data Security concern:- When we talk about the security concern of the cloud
technology, then a lot of questions remain unanswered. Multiple serious threats like virus
attack and hacking of the client’s site are the biggest cloud computing data security
issues. Entrepreneurs have to think on these issues before adopting cloud computing
technology for their business. Since you are transferring your company’s important
 details to a third party so it is important to ensure yourself about the manageability and
security system of the cloud.

2. Selecting the perfect cloud set-up:- Choosing the appropriate cloud mechanism as
per the needs of your business is very necessary. There are three types of clouds
configuration such as public, private, and hybrid. The main secret behind successful
implementation of the cloud is picking up the right cloud. If you are not selecting the
right cloud then maybe you have to face some serious hazards. Some companies having
vast data so they prefer private clouds while small organisations usually use public
clouds. A few companies like to go for a balanced approach with hybrid clouds. Choose a
cloud computing consulting service which is aware and clearly disclose the terms and
conditions regarding cloud implementation and data security.

3. Real time monitoring requirements:- In some agencies, it is required to monitor

their system in real time. It is compulsory term for their business that they continuously
monitor and maintain their inventory system. Banks and some government agencies need
to update their system in real time but cloud service providers are unable to match this
requirement. This is really a big challenge for cloud services providers.

4. Resolving the stress:-Every organization wants to have a proper control and access
over the data. It is not easy to handover your precious data to a third party. The main
tension between enterprise and executives is they desire to control over the new modes of
operations while using technology. These tensions are not unsolvable, but they do suggest
that providers and clients alike must deliberately address a suite of cloud challenges in
the planning, contracting and managing the services.

5. Reliability on new technology:- It is a fact of human nature that we trust on the

things present in front of our eyes. Normally entrepreneurs feel hesitation in letting out
the organisational information to any unknown service provider. They think that
information stored in their office premises is more secure and easily accessible. By using
cloud computing they have fear of losing control over the data. They think that data is
taken from them and handover to an unknown third party. Security threads are increase as
they do not know and where is the information stored and processed. These frights of the
unknown service providers must very amicably be dealt with and eliminated form their
minds.

6. Dependency on service providers:- For uninterrupted services and proper

working it is necessary that you acquire a vendor services with proper infrastructural and
technical expertise. An authorized vendor who can meet the security standards set by
your company’s internal policies and government agencies. While selecting the service
provider you must carefully read the service level agreement and understand their
policies and terms and provision of compensation in case of any outage or lock in
clauses.
7. Cultural obstacles:- High authority of the company and organizational culture has also
become a big obstacle in the proper implementation of the cloud computing. Top authority never
wants to store the important data of the company somewhere else where they are not able to
control and access the data. They have misconceptions in their minds that cloud computing puts
the organization at the risk by seeping out important details. Their mindset is such that the
organization on risk averse footing, which makes it more reluctant to migrate to a cloud solution.

8. Cost barrier:- For efficient working of cloud computing you have to bear the high charges
of the bandwidth. Business can cut down the cost on hardware but they have to spend a huge
amount on the bandwidth. For smaller application cost is not a big issue but for large and
complex applications it is a major concern. For transferring complex and intensive data over the
network it is very necessary that you have sufficient bandwidth. This is a major obstacle in front
of small organizations, which restrict them for implementing cloud technology in their business.

9. Lack of knowledge and expertise:- Every organisation does not have sufficient
knowledge about the implementation of the cloud solutions. They have not expertise staff
and tools for the proper use of cloud technology. Delivering the information and selection
the right cloud is quite difficult without right direction. Teaching your staff about the
process and tools of the cloud computing is a very big challenge in itself. Requiring an
organisation to shift their business to cloud based technology without having any proper
knowledge is like asking for disaster. They would never use this technology for their
business functions.

10. Consumption basis services charges:- Cloud computing services are on-demand
services so it is difficult to define specific cost for a particular quantity of services. These
types of fluctuations and price differences make the implementation of cloud computing
very difficult and complicated. It is not easy for a normal business owner to study
consistent demand and fluctuations with the seasons and various events. So it is hard to
budget for a service that could consume several months of budget in a few days of heavy
use.

11. Alleviate the threats risk:- It is very complicated to certify that the cloud
service provider meet the standards for security and threat risk. Every organisation may
not have enough mechanism to mitigate these types of threats. Organisations should
observe and examine the threats very seriously. There are mainly two types of threat such
as internal threats, within the organisations and external threats from the professional
hackers who seek out the important information of your business. These threats and
security risks put a check on implementing cloud solutions.

12. Unauthorised service providers:- Cloud computing is a new concept for most of
the business organisations. A normal businessman is not able to verify the genuineness of
the service provider agency. It’s very difficult for them to check the whether the vendors
meet the security standards or not. They have not an ICT consultant to evaluate the
vendors against the worldwide criteria. It is necessary to verify that the vendor must be
operating this business for a sufficient time without having any negative record in past.
 Vendor continuing business without any data loss complaint and have a number of
satisfied clients. Market reputation of the vendor should be unblemished.

13.Hacking of brand:- Cloud computing carries some major risk factors like hacking.
Some professional hackers are able to hack the application by breaking the efficient
firewalls and steal the sensitive information of the organisations. A cloud provider hosts
numerous clients; each can be affected by actions taken against any one of them. When
any threat came into the main server it affects all the other clients also. As in distributed
denial of service attacks server requests that inundate a provider from widely distributed
computers.

14.Recovery of lost data:- Cloud services faces issue of data loss. A proper backup
policy for the recovery of data must be placed to deal with the loss. Vendors must set
proper infrastructures to efficiently handle with server breakdown and outages. All the
cloud computing service providers must set up their servers at economically stable
locations where they should have proper arrangements for the backup of all the data in at
least two different locations. Ideally they should manage a hot backup and a cold backup
site.

15. Data portability:- Every person wants to leverage of migrating in and out of
the cloud. Ensuring data portability is very necessary. Usually, clients complain about
being locked in the cloud technology from where they cannot switch without restraints.
There should be no lock in period for switching the cloud. Cloud technology must have
capability to integrate efficiently with the on premises. The clients must have a proper
contract of data portability with the provider and must have an updated copy of the data
to be able to switch service providers, should there be any urgent requirement.

16. Cloud management:- Managing a cloud is not an easy task. It consist a lot of
technical challenges. A lot of dramatic predictions are famous about the impact of cloud
computing. People think that traditional IT department will be outdated and research
supports the conclusions that cloud impacts are likely to be more gradual and less linear.
Cloud services can easily change and update by the business users. It does not involve
any direct involvement of IT department. It is a service provider’s responsibility to
manage the information and spread it across the organisation. So it is difficult to manage
all the complex functionality of cloud computing

17. Dealing with lock-ins:- Cloud providers have an important additional incentives to
attempt to exploit lock-ins. A prefixed switching cost is always there for any company
receiving external services. Exit strategies and lock-in risks are primary concerns for
companies looking to exploit cloud computing.

18. Transparency of service provider:- There is no transparency in the

service provider’s infrastructure and service area. You are not able to see the exact
location where your data is stored or being processed. It is a big challenge for an
organisation to transfer their business information to such an unknown vendor.
 19.Transforming the data into virtual set-up:- Transition of business data from a
premise set up to a virtual set up is a major issue for various organizations. Data migration and
network configuration are the serious problems behind avoiding the cloud computing technology.

20. Popularization of cloud computing:- The idea of cloud has been famous that
there is a rush of implementing virtualization amongst CIOs. This has led to more
complexities than solutions.

These are some common problems regarding the cloud computing execution in real life. But
the benefits of cloud computing are more vast in compare to these hazards. So you should find
the perfect solutions and avail the huge benefits of cloud technology in your business. It can take
your business to the new heights!!

Technological influences for Cloud computing: Universal

Connectivity, Excess Capacity, Open Source Software
Universal Connectivity
Without universal connectivity (universal access to the internet), cloud computing would
not be able to progress or advance. Fast, broadband networks, available to all, allows cloud
computing to serve and connect businesses, organizations and customers. Thankfully, cloud
computings growth is supported by the ongoing worldwide expansion of broadband connections.

According to itfacts.biz:

“As the total number of broadband lines in the world passes 400 mln, Point Topic forecasts that
the total in the 40 biggest broadband countries in the world will grow from 393 mn by the end of
2008 to 3 bn by 2025”

Excess Capacity
The promise of cloud computing is that whenever you want to ramp up a new instance (or
hundreds of instances), you can do so with just the click of a button.

For cloud providers, this presents a capacity challenge.

Cloud providers need to ensure that whenever you need compute capacity, they have it ready for
you to use. In other words, cloud providers always need to have unused servers ready and
waiting for you whenever you choose to click that button. From a business standpoint, spare
capacity is never a good thing. Just like any company doesn’t want to be stuck with excess
product they can’t sell, cloud providers want to be monetizing every last piece of hardware they
own and run. Not to mention the fact that they still need to pay for these servers. Rent,
electricity, the hardware itself, setup, and maintenance all cost money.
At the same time, cloud providers can’t be monetizing all of their servers or else customers
wouldn’t be able to ramp up their compute when they needed to. So how can cloud providers
both leave servers open for new customers AND monetize them?

“Everyday Amazon adds enough compute capacity to its global fleet to power Amazon.com.”

– James Hamilton, VP & Distinguished Engineer, Amazon.com.

The dawn of Spot Instances

Amazon Web Services was the first cloud provider to address this challenge, and did so with a
brilliant offering called “Spot Instances”. Announced back in 2009, Spot Instances were
launched to solve this very problem. Spot Instances (aka spare capacity at AWS) is how AWS
packages their spare capacity to customers – by selling them at a massive discount (usually
around 80% off On-Demand prices). This attractive pricing comes with a major caveat. Once
AWS needs your Spot Instance for an On-Demand customer, your Spot Instance will be
terminated with just two minutes notice. By doing so, AWS was able to monetize their spare
capacity without closing them off to new customers

Open-Source Software
There exists a place for open-source software in cloud computing, in a number of different
forms, however there is a mix of opinions towards its use. The people and organisations in favor
of using open-source software can cite various advantages, including:

 Lack of license fees and no need to pay for updates/upgrades

 Use of open file formats
 Open and accessible source code
 Easy adoption and low barriers for new users
 New applications can be easily developed and integrated
 Software that can be modified and redistributed
 Avoidance of proprietary lock-in

Proprietary technology can often emerge from the use of open-source software – cloud providers
that use software like Linux can customize the services by modifying the source code.

People prefer open source software to proprietary software for a number of reasons, including:

Control. Many people prefer open source software because they have more control over that kind
of software. They can examine the code to make sure it’s not doing anything they don’t want it
to do, and they can change parts of it they don’t like. Users who aren’t programmers also benefit
from open source software, because they can use this software for any purpose they wish—not
merely the way someone else thinks they should.
Training. Other people like open source software because it helps them become better
programmers. Because open source code is publicly accessible, students can easily study it as
they learn to make better software. Students can also share their work with others, inviting
comment and critique, as they develop their skills. When people discover mistakes in programs’
source code, they can share those mistakes with others to help them avoid making those same
mistakes themselves.

Security. Some people prefer open source software because they consider it more secure and
stable than proprietary software. Because anyone can view and modify open source software,
someone might spot and correct errors or omissions that a program’s original authors might have
missed. And because so many programmers can work on a piece of open source software without
asking for permission from original authors, they can fix, update, and upgrade open source
software more quickly than they can proprietary software.

Stability. Many users prefer open source software to proprietary software for important, long-
term projects. Because programmers publicly distribute the source code for open source
software, users relying on that software for critical tasks can be sure their tools won’t disappear
or fall into disrepair if their original creators stop working on them. Additionally, open source
software tends to both incorporate and operate according to open standards.