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Q1. What business benefits do cloud computing services provide?
What problems do they solve?
Sol1. Cloud computing services has benefitted the business world a lot. In the case study we have also inferred that Zynga has fostered a lot by using AWS. Some of the advantages are listed below:- -Cost effective: By opting cloud service model, companies only pay for the resources that actually they use. Thus it helps to save the cost of servers and other equipment. - Data security: Hardware failures do not result in data loss because of networked backups. - Accessibility: Cloud-based applications and data are accessible from virtually any internet-connected device.
- Speed to market: Developing in the cloud enables users to get their
applications to market quickly. -Security features: Virtual Private Cloud , encryption, and API keys help keep data secure. -High Availability:Cloud providers typically offer high levels of reliability and availability through redundant systems. -Data Backup and Recovery: Cloud services often include built-in backup and recovery solutions Sol2. -Downtime: In the case study above, we have inferred that although cloud computing has significantly fostered in the business world, still it experiences some challenges. The case study by experts has shown that cloud computing has an average availability of 99.9 percent but still this small amount of downtime can cause a large revenue loss for firms that need 24 by 7 availability. For instance, a simple network configuration error caused a major multiday service outage in Amazon during 2011. While rare, cloud service outages can occur and affect multiple users. -Dependence on Internet Connectivity: Access to cloud services relies on a stable internet connection.Poor internet connection can scale down its service. -Security Issue: Users may be concerned about the security of sensitive data stored in the cloud. Regulations on data protection can be challenging. - Care for Cost Management: Although it is cost-effective, users need to manage usage to avoid unexpected costs. Continuous subscription costs may accumulate over time. -Data Sharing : Moving data and applications between cloud providers can be complex. -Dependence on Cloud computing: Users may become heavily reliant on a specific cloud provider. -Shared Resources: Resources are shared among multiple users, potentially impacting performance during peak times. Moreover , Performance may vary based on the provider and the shared infrastructure.
Sol 3. 1. Capacity Planning: Amazon, as a global e-commerce and cloud computing giant, needs to carefully plan its capacity to handle varying workloads across its services. This includes:
Demand Prediction: Amazon must analyze historical data,
market trends, and seasonal variations to forecast the computing resources required for its e-commerce platform and cloud services like AWS. Resource Allocation: Efficiently allocating resources to handle peak shopping seasons, such as Black Friday or holiday seasons, is crucial. For AWS, capacity planning involves estimating the demand for cloud services across different regions and services. Performance Optimization: Ensuring that Amazon's infrastructure can handle the simultaneous transactions, website visits, and data processing is vital. Capacity planning helps in optimizing performance and preventing disruptions. 2. Scalability: Amazon's scalability is evident in its ability to adapt to changing demands and expand its operations. This includes:
Vertical Scalability: Amazon can vertically scale its e-commerce
platform by upgrading its servers, databases, and other infrastructure components to handle increased traffic and transactions. Horizontal Scalability: Amazon Web Services (AWS) exemplifies horizontal scalability, allowing users to scale their computing resources by adding more instances or services. AWS's elasticity enables users to scale up or down based on demand. 3. Total Cost of Ownership (TCO): Considering TCO is crucial for Amazon to make informed financial decisions and maintain profitability. This involves:
Capital Expenses (CapEx): Amazon invests in building and
maintaining its data centers, warehouses, and other infrastructure. This CapEx is part of the overall TCO. Operational Expenses (OpEx): Day-to-day operational costs, such as salaries, maintenance, and energy consumption for data centers, contribute to OpEx. Efficient management of these costs is essential for TCO optimization. Investment Evaluation: Amazon evaluates the TCO of its various services and infrastructure investments. This evaluation influences decisions on resource allocation, technology upgrades, and the introduction of new services. Sol4. As cloud computing has a wide range of benefits, businesses of all sizes and across various sectors adopt cloud computing nowadays based on their specific needs and goal. Some instances of cloud computing are provided below:- Startups and Small Businesses: Cloud computing helps startups and small businesses to save money instead of large investments on infrastructure. They can pay for resources as they use them. E-commerce businesses: Cloud computing has helped E-commerce businesses a lot by enabling them a global access as the content could be accessed from anywhere across the globe. Education: Nowadays cloud computing is used extensively in cloud computing also. Specifically after lockdown period, educational institutes have started relying on the services provided by the cloud. For example, Google Classroom is used that provides ease for the evaluation process. Healthcare Services: Cloud computing facilitates collaboration among healthcare professionals and allows secure sharing of medical records. Financial Services: Financial institutions benefit from the high-level security features. Cloud-based analytics help financial services companies analyze vast amounts of data for risk management, fraud detection, and decision-making. Scalability: Small businesses can easily scale their operations up or down based on demand without the need for extensive IT resources. Manufacturing and Data Analytics: Cloud computing supports data analytics for manufacturers by processing and analyzing data from IoT devices, and optimizing production processes. Manufacturers can benefit from the scalability and flexibility of cloud resources for handling varying workloads.