LECTURES

Cloud Computing
Unit Content Hrs.

UNIT
• Migration into a Cloud :Seven Step Model of
3
Migration into Cloud,
• Integration as a Service : Evolution of SaaS,
Integration Methodologies, SaaS Integration
8
Services,
• Enterprise Applications on Cloud :Transition
Challenges, Enterprise Cloud Technology and
Market Evolution, The Cloud Supply Chain
Migration into cloud
Migrating to the cloud is a complex decision involving
technical, economic, and strategic considerations. The
migration process must balance:
•Cost vs. Benefit (TCO and ROI).
•Cloud service models (IaaS, PaaS, SaaS).
•Hybrid or full migration strategies.
•Challenges in performance, security, and scalability.
By using mathematical models, cloudonomics principles,
and weighted decision-making techniques, enterprises can
make informed cloud migration decisions.
Introduction
•Disruptive Model – Cloud computing merges technology with a new
business model for scalability and cost-effectiveness.
•Migration Challenges – Enterprises must decide what, when, and
how to migrate IT components to the cloud.
•Industry Adoption – Tech giants like Google, Amazon, and Microsoft
pioneered cloud services despite initial challenges.
•Resource Optimization – Cloud computing maximizes IT efficiency
by dynamically allocating resources based on demand.
•Cloudonomics Impact – The cost savings and flexibility of cloud
computing drive widespread adoption across businesses.
The Cloud Service Offerings
and Deployment Models
BROAD
APPROACHES TO
MIGRATING INTO
THE CLOUD
Challenges in the Cloud
 Challenges in Cloud Migration
Cloud migration presents several challenges:
Distributed System Fallacies
Common mistaken assumptions:
•Zero network latency (latency always exists).
•Infinite bandwidth (bandwidth is limited).
•Full network reliability (failures can occur).
•No topology changes (network configurations
evolve).
 Challenges in Cloud Migration
Key Technical Challenges
•Security & Compliance (data protection, access control).
•Performance Monitoring (ensuring application efficiency in the
cloud).
•Service Abstractions (consistent cloud APIs across providers).
•Energy-Efficient Load Balancing (reducing power consumption).
•Interoperability & Portability (ensuring cloud applications work
across providers).
•SLA & QoS Management (meeting service level agreements).
•Green IT (reducing environmental impact).
Why Migrate to the Cloud?
Cloud migration is driven by:
•Economic reasons (reducing Capex and Opex).
•Business factors (scalability, elasticity, better service availability).
•Technological advancements (performance, security, interoperability).
What to Migrate?
There are multiple levels at which migration can occur:
1.Application level (migrating the entire software).
2.Code level (modifying parts of the application).
3.Design level (adapting the system for the cloud).
4.Architecture level (rebuilding the application for the cloud).
5.Usage level (changing how users interact with the system).
Ways to Migrate
Migration can be:
•Full (entire application moves to the cloud).
•Hybrid (some components stay in local data centers).
•Partial (some code or services are cloud-optimized)
Migration Equation
Migration Equation
The equation provided models different migration scenarios:

For example:
•IaaS (Infrastructure as a Service): 30 migration scenarios.
•PaaS (Platform as a Service): 20 migration scenarios.
•SaaS (Software as a Service): Typically involves only usage
migration.
Cloudonomics (Economic
Feasibility)
Cloud migration should be financially viable. Factors affecting the
economic feasibility include:
•Total Cost of Ownership (TCO): The long-term cost of cloud vs. private
data centers.
•Licensing Issues: Costs associated with software licensing when
migrating.
•Service Level Agreements (SLA): Compliance with cloud providers'
terms.
•Pricing Variability: Cloud pricing models for compute, storage, and
bandwidth
Cloudonomics (Economic
Feasibility)
Decision-Making for Cloud
Migration
 Decision-Making for Cloud
Migration
How It Works
•Experts evaluate cloud migration using a questionnaire.
•Each question is assigned a weight based on its impact.
•Scores are computed, and if the total score is within threshold limits, migration
is feasible.
•If the score is below threshold Cl, migration is not viable.
•If the score is above threshold Ch, migration is highly recommended.
THE SEVEN-STEP MODEL OF
MIGRATION INTO A CLOUD
THE SEVEN-STEP MODEL OF
MIGRATION INTO A CLOUD
THE SEVEN-STEP MODEL OF
MIGRATION INTO A CLOUD
Integration as a Service
Introduction
•Businesses are increasingly deploying applications in the
cloud to take advantage of technical and business benefits.

•Despite the growth of cloud applications, many

applications and data sources remain on-premise due to
security concerns.

•The challenge lies in establishing seamless connectivity

between cloud-hosted and on-premise applications to
enable them to work together efficiently.
Integration as a Service (IaaS):
•IaaS is an emerging cloud capability that addresses
business integration needs by leveraging Business-to-
Business (B2B) integration technology to bridge SaaS
solutions and on-premise applications.

•IaaS involves migrating enterprise application integration

(EAI) or enterprise service bus (ESB) functionality to the
cloud to enable smooth data transport between
enterprises and SaaS applications.
SaaS Integration:
•Cloud-centric integration solutions are developed to
showcase capabilities for integrating both enterprise and
cloud applications.
•With cloud computing's disruptive impact, traditional
enterprise products are transitioning into service-based
models, allowing seamless and global integration.
•SaaS integration is becoming more accessible, cost-
effective, and rapid, enabling integration needs to be met
globally.
Service Integration
•Uses ESB for service integration and
•EDB for data integration, ensuring the flow of information
between applications.
Integration Methodologies
1.Traditional Enterprise Integration Tools Empowered with
Cloud Connectors:
Existing enterprise integration platforms are enhanced with special
drivers, connectors, and adapters to connect with cloud applications
and provide bidirectional connectivity.

2.Traditional Enterprise Integration Tools Hosted in the

Cloud:
The same tools are hosted in third-party cloud infrastructures,
reducing the need for enterprises to manage hardware and
integration software.

3.Integration-as-a-Service (IaaS):
SaaS applications designed to deliver integration services securely
over the Internet, integrating both cloud-to-cloud and cloud-to-on-
premise systems.
Key Characteristics of
Integration Solutions:
•Connectivity: The ability to engage with both source and target systems
using native interfaces.
•Semantic Mediation: Ensures that differences in application semantics
(interpretation of data) are accounted for.
•Data Mediation: Transforms data from one format to another during
integration.
•Data Migration: Transfers data between systems, mapping old data
formats to new ones.
•Data Security: Ensures the secure movement of data between systems.
•Data Integrity: Guarantees consistency and completeness during
integration operations.
•Governance: Processes and technologies that control how systems are
accessed and used.
Cloud Integration Scenarios:
1.Within a Public Cloud: Two applications hosted within the
same cloud, integrated via cloud-based ESB or ISB.
2.Homogeneous Clouds: Applications in geographically
separated cloud infrastructures integrated through an ISB.
3.Heterogeneous Clouds: One application in a public cloud
and another in a private cloud, requiring integration
middleware for data and protocol transformation.
Cloud Integration Scenarios:
Cloud Integration Scenarios:
Why SaaS Integration Is
Challenging:
•Limited Access: Access to cloud resources is more limited
than local applications. Custom solutions are required to
support integration, as cloud vendors provide integration
hooks and APIs.
•Dynamic Resources: Cloud resources are virtualized, and
infrastructural changes can impact the integration model.
•Performance Issues: Network latency and the distance
between elements in the cloud can slow down integration
performance.
Integration Products and
Platforms:
•Jitterbit: A fully graphical integration solution that integrates enterprise
applications, web services, XML sources, and legacy systems.
•Boomi Software (BoomiAtomSphere): An on-demand service connecting
SaaS, PaaS, cloud, and on-premise applications without the need for
software installation.
•Bungee Connect: A platform that enables the integration of multiple data
sources and the deployment of cloud-based applications.
•OpSource Connect: Provides infrastructure for two-way web services
interactions across a common web services infrastructure.
•SnapLogic: A clean and uncluttered solution for data integration across
enterprise and cloud landscapes.
•Pervasive DataCloud: A multi-tenant platform offering Integration-as-a-
Service (IaaS) for both hosted and on-premises applications.
The Pervasive DataCloud
Enriching the "Integration as a
Service" Paradigm:
•Cloud Computing's Role in the IT Landscape:
• The rise of cloud computing has significantly impacted IT and
business sectors by enabling service-oriented application designs
and flexible cloud infrastructures.
• Cloud computing promises high performance, scalability,
affordability, and global accessibility, enabling real-time dynamic
services.
•IT is transitioning from being a business enabler to a central facilitator in
all aspects of human life. New computing paradigms (grid, on-demand,
cloud, etc.) are emerging to enable smarter and more adaptive IT
solutions.
•Ambient intelligence (AmI) is becoming a key concept, with
technologies enabling seamless and context-aware interactions through
a network of smart objects and devices.
Evolution of SaaS:
•SaaS is rapidly evolving and becoming a cornerstone of IT
strategies. The SaaS model delivers flexible, service-based IT
solutions that cater to diverse business needs.
•As cloud computing accelerates the adoption of service
models, the SaaS paradigm is gaining momentum, offering
scalable, adaptive, and cost-effective solutions across
various sectors.
Enterprise Applications on
Cloud
Introduction
•Cloud computing is evolving with new vendors, services, and
offerings.
•The evolution is driven by changing consumer requirements and
improved services.
•Adoption is mainly by start-ups and SMEs, while large
enterprises are still cautious.
•Enterprise cloud computing aligns cloud models with business
goals (profit, ROI, cost reduction).
•Widespread enterprise adoption depends on meeting stringent
requirements.
Types of Cloud Deployment
Models for Enterprise Cloud
Computing
1.Public Cloud – Hosted by third-party providers and available
to the general public on a pay-per-use model.
2.Private Cloud – Exclusively owned and managed by an
organization for internal business operations.
3.Virtual Private Cloud (VPC) – A secure, isolated segment
within a public cloud using network virtualization.
4.Community Cloud – Shared by multiple organizations with
common concerns like security and compliance.
5.Managed Cloud – Infrastructure owned by an organization but
managed by a third-party service provider.
6.Hybrid Cloud – A combination of two or more cloud types
enabling data and application portability.
Adoption and Consumption
Strategies
Adoption and Consumption
Strategies
Issues for Enterprise
Applications on the Cloud
•ERP optimizes business processes with an integrated
information flow.
•Cloud computing is emerging as a potential ERP
execution environment.
•A balance of strategic and operational steps is needed
for successful cloud adoption.
Key Issues in Cloud-Based ERP
Infrastructure Availability
•IT infrastructure, hardware, and networking are critical.
•Transition from legacy systems to cloud-based ERP is complex.
•Infrastructure as a Service (IaaS) offers scalability but poses
challenges.
Workload Adaptation
•Organizations show willingness to migrate both test and
production workloads to the cloud.
•Companies are nearly as comfortable running production
workloads as development workloads on cloud platforms.
Key Differences: Transactional
vs. Analytical Applications
Transactional (OLTP) Applications
•Handle critical business operations (e.g., CRM, SCM, Banking).
•Require strict ACID compliance for data integrity.
•Cloud architectures struggle with ACID due to distributed nature.
•Security and data privacy are major concerns.
Analytical (OLAP) Applications
•Focus on BI, reporting, and decision-making.
•Less reliant on ACID, making them cloud-friendly.
•Analytics as a Service (AaaS) is growing in popularity.
•Major providers offer on-demand BI solutions (e.g., SAP Business
ByDesign, Cognos Now!).
Key Challenges in Cloud ERP
Transition
•IT Asset Assessment – Evaluate infrastructure;
Hybrid cloud is preferred.
•Legacy Migration – Costly, complex, and requires
SOA for future scalability.
•Security & Governance – Balance data ownership,
reliability, and control.
2. Why do analytical applications
benefit more from cloud adoption
than transactional applications?
ENTERPRISE CLOUD TECHNOLOGY
AND MARKET EVOLUTION
 Technology Drivers
•Vendor Lock-in Concerns: Enterprises demand open, interoperable cloud
standards to avoid proprietary restrictions.
•Cloud Standardization Efforts: Initiatives like OGF OCCI (compute), SNIA
CDMI (storage), and DMTF VMAN aim for interoperability, but major
vendors (Amazon, Google, Microsoft) are not actively participating.
•Service Level Agreements (SLAs): Improved SLAs will drive enterprise
adoption, ensuring performance, security, and compliance.
•Advanced Monitoring & Reporting: Enterprises need better visibility into
cloud service health, pushing providers to enhance analytics and
transparency.
 Growth in Cloud Service
Models
•SaaS Expansion: Enterprises adopt SaaS applications for non-core
processes; seamless integration with on-premise systems is crucial.
•NoSQL & Alternative Data Storage: Cloud computing drives adoption of
non-relational databases (e.g., Amazon Dynamo, Google BigTable).
•PaaS Maturity & Consolidation: Currently fragmented, the PaaS market will
consolidate as larger software vendors enter.
•IaaS Adoption: Initially favored by startups, enterprises are now
experimenting with IaaS for R&D and cost savings.
 Market Evolution & Emerging
Trends
Cloud Brokerage Services: As cloud offerings become complex,
intermediary services will emerge:
• Intermediation: Enhancing existing cloud services.
• Aggregation: Combining multiple services into a unified
solution.
• Arbitrage: Allowing flexible and opportunistic service
selection.
•Cost & Transparency: Enterprises demand usage-based pricing
models and operational transparency from cloud providers.
BUSINESS DRIVERS TOWARD A
MARKETPLACE FOR
ENTERPRISE CLOUD COMPUTING
BUSINESS DRIVERS TOWARD A
MARKETPLACE FOR
ENTERPRISE CLOUD COMPUTING
Cloud Supply Chain
Q1. How does Porter’s Five Forces model help
in analyzing competition and strategic
positioning in the cloud computing market?
Q2. Why are dynamic business models
essential for ICT-driven industries, and how do
external drivers influence their evolution?