Dr.

Shakuntala Misra National Rehabilitation

University ,Lucknow

Introduction

Unit: 1

CLOUD
COMPUTING (Subject Code TCS 074) Mr. Saurabh Gupta
M. Tech (CSE) from IIT
Department of CSE
Course Details Dr. Shakuntala Misra
(B.Tech 7th Sem) National Rehabilitation University
LUCKNOW
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 Branch wise Applications of Cloud Computing
Cloud service providers provide various applications in the field of art, business, data
storage and backup services, education, entertainment, management, social networking,
etc.
The most widely used cloud computing applications are given below -

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 What Happened Before the Cloud Technology Emerged?

 What was the approach to run an IT application or business projects in

traditional model of computing?

Buy stacks of servers and Maintain and upgrade Recruit network professional
other hardware components the servers

Major Disadvantages of Traditional Computing:

 Increase in expenditure cost.

 Poor scalability and flexibility based on varying traffic.
 Resources underutilization because most of the time servers are idle.
 Maintenance overhead.
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 Concept of Cloud Computing

 In the simplest terms, “cloud computing makes IT resources as subscription

oriented services wherein from third party service providers you simply rent the
computing capability whatever you need for how long you need and pay for
what you have consumed”.

 Real-time Example of Cloud Computing: For Backup and recovery Google

provides Dropbox, Google Drive and Amazon provides S3.

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 Introduction to cloud computing(CO1)

• Cloud computing is the on demand delivery of compute power database

storage, application and other IT resources through a cloud service platform
via internet with pay as you go.

• Cloud Computing provides us a means by which we can access the

applications as utilities, over the Internet.

• It allows us to create, configure, and customize applications online.

Example- cloud service platform

• Amazon web service
• Microsoft Azure
• Alibaba
• Google
• oracle
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 Cloud(CO1..)

• The term Cloud refers to a Network

or Internet.

• - In other words, we can say that

Cloud is something, which is present
at remote location.

• - Cloud can provide services over

network, i.e., on public networks or
on private networks, i.e., WAN, LAN
or VPN.

• - Applications such as e-mail, web

conferencing, customer relationship
management (CRM),all run in cloud.

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 Cloud Computing Definition

The National Institute of Standards and Technology (NIST) has a more comprehensive
definition of cloud computing. It describes cloud computing as "a model for enabling
ubiquitous, convenient, on-demand network access to a shared pool of configurable
computing resources (e.g., networks, servers, storage, applications and services) that can be
rapidly provisioned and released with minimal management effort or service provider
interaction."

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 Why cloud computing(CO1)

• Small as well as large IT companies, follow the traditional methods to provide the IT
infrastructure. That means for any IT company, we need a Server Room that is the
basic need of IT companies.

• In that server room, there should be a database server, mail server, networking,
firewalls, routers, modem, switches, QPS (Query Per Second means how much
queries or load will be handled by the server), configurable system, high net speed,
and the maintenance engineers.

• To establish such IT infrastructure, we need to spend lots of money. To overcome all

these problems and to reduce the IT infrastructure cost, Cloud Computing comes into
existence.

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 Why cloud computing(CO1)

• Traditional Computing • Cloud Computing

• Buy & Own • Subscribe
• Hardware, System Software, Applications • Use
often to meet peak needs. • $ - pay for what you use, based on QoS
• Install, Configure, Test, Verify
• Manage
• Finally, use it

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 Parallel Computing (CO1)

• Parallel computing is a type

of computation in which many
calculations or the execution of
processes are carried out
simultaneously.
• Large problems can often be divided
into smaller ones, which can then be
solved at the same time.
• It saves time and money as many
resources working together will reduce
the time.

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Evolution of cloud computing (CO1..)

Distributed Systems:

• It is a composition of multiple independent systems but all of them together are

depicted as a single entity to the users.

• The purpose of distributed systems is to share resources and also use them
effectively and efficiently.

• Distributed systems possess characteristics such as scalability, concurrency,

continuous availability, heterogeneity, and independence in failures.

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 Distributed Computing (CO1)

• A distributed computer system

consists of multiple software
components that are on multiple
computers, but run as a single system.
• The computers that are in a
distributed system can be physically
close together and connected by a
local network, or they can be
geographically distant and connected
by a wide area network
• Such systems are independent of the
underlying software

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 Client/Server computing (CO1)

• In client/server computing, a server takes requests from client computers and shares its
resources, applications and/or data with the clients on the network

• a client is a computing device that initiates contact with a server in order to make use of
a shareable resource.

• A server may serve multiple clients at the same time while a client is in contact with
only one server.

• Both the client and server usually communicate via a computer network but sometimes
they may reside in the same system.

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Client/Server computing (CO1)

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Client/Server computing (CO1)

Characteristics of Client Server Computing:

• The client server computing works with a system of request and response. The
client sends a request to the server and the server responds with the desired
information.
• The client and server should follow a common communication protocol so they can
easily interact with each other. All the communication protocols are available at the
application layer.
• A server can only accommodate a limited number of client requests at a time. So it
uses a system based to priority to respond to the requests.
• An example of a client server computing system is a web server. It returns the web
pages to the clients that requested them.

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 Parallel vs Distributed Computing

Parallel Computing Distributed Computing

Many operations are performed System components are located at different

simultaneously. locations.

Single computer is required. Uses multiple computers.

Multiple processors perform multiple Multiple computers perform multiple

operations. operations.

It may have shared or distributed memory It only supports distributed memory

Improves the system performance. Improves system scalability, fault tolerance and
resource sharing capabilities.

Processors communicate with each other Computer communicate with each other
through bus. through message passing.

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Parallel vs Distributed Computing

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 Evolution of cloud computing (CO1..)

Mainframe computing:

• Mainframes which first came into existence in 1951 are highly powerful and reliable
computing machines.

• These are responsible for handling large data such as massive input-output
operations.

• Even today these are used for bulk processing tasks such as online transactions etc.

• These systems have almost no downtime with high fault tolerance.

• After distributed computing, these increased the processing capabilities of the

system. But these were very expensive.

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Mainframe Computer

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 Cluster vs Grid Computing

Cluster Computing
A cluster computer refers to a network of same type of computers whose target is to
work as a same unit. Such a network is used when a resource hungry task requires high
computing power or memory. Two or more same types of computers are clubbed
together to make a cluster and perform the task.

Grid Computing
Grid computing refers to a network of same or different types of computers whose target
is to provide a environment where a task can be performed by multiple computers
together on need basis. Each computer can work independently as well.

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 Cluster vs Grid Computing

Key Cluster Computing Grid Computing

Type Nodes or computers has to be of Nodes or computers can be of same or

same type, like same CPU, same OS. different types. Grid computer can have
Cluster computing needs a homogeneous or heterogeneous
homogeneous network network.

Task Computers of Cluster Computing are Computers of Grid Computing can

dedicated to single task and they leverage the unused computing
cannot be used to perform any resources to do other tasks.
other task.

Location Computers of Cluster computing are Computers of Grid Computing can be

co-located and are connected by present at different locations and are
high speed network bus cables. usually connected by internet or a low
speed network bus.

Topology Cluster computing network is Grid computing network is distributed

prepared using a centralized and have a de-centralized network
network topology. topology.

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 Cluster vs Grid Computing

Key Cluster Computing Grid Computing

Task A centralized server controls the In Grid Computing, multiple servers

Scheduling scheduling of tasks in cluster can exist. Each node behaves
computing. independently without need of any
centralized scheduling server.
Resource Cluster Computing network has a In Grid Computing, each node is
Manager dedicated centralized resource independently managing each own
manager, managing the resources.
resources of all the nodes
connected.
Autonomy In Cluster computing network, In Grid computing network, each node
whole system works as a unit. is independent and can be taken down
or can be up at any time without
impacting other nodes.

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Utility Computing
• Utility computing is a service provisioning model. This service provisioning modeling
provides computing resources and infrastructure management to the customer as per
their demand.

• The customers are charged for them as you go basis without any upfront cost. The
utility model maximizes the efficient use of resources while minimizing the associated
cost.

• Utility computing has an advantage that there will be a low initial cost to acquire
computer resources.

• The customer can access the infinite amount of computing solution with the help of the
internet or a virtual private network. The provider will perform the backend
infrastructure and computing resources management.

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 Continue

• On the basis of above computing, there was emerged of cloud computing concepts that
later implemented.

• At around in 1961, John MacCharty suggested in a speech at MIT that computing can be
sold like a utility, just like a water or electricity

• In 1999, Salesforce.com started delivering of applications to users using a simple

website.

• The applications were delivered to enterprises over the Internet, and this way the dream
of computing sold as utility were true.

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 Cloud Service Providers

• 2002- Amazon launched Amazon Web Services (AWS) providing services like storage,
computation and even human intelligence.
• 2006- Amazon launched Amazon Web Services (AWS) with Elastic Compute Cloud
(EC2) which allows users to launch computing resources on pay-per-use.
• 2008- Google launched its Google App Engine (GAE) Platform-as-a-Service (PaaS),
allowing developers to host web applications in its managed data centers.
• 2010- Microsoft, entered the cloud market with the launch of its cloud computing
platform Azure.
• 2011- IBM launched Smart Cloud then renamed it as IBM's Bluemix and launched in
2014 for the academic organizations concerning to PaaS services.
• 2011- IIT Delhi launched Baadal cloud for Infrastructure-as-a-Service (IaaS) services.
• 2013- C-DAC Chennai launched Meghdoot cloud platform for IaaS services

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 Characteristics of cloud computing(CO1)

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 Characteristics of cloud computing(CO1)

• On-demand self-service:

Cloud computing resources can be provisioned without human interaction from the
service provider. In other words, the user can provision additional computing resources
(storage space, virtual machine instances, database instances etc.) as needed without
going through the cloud service provider.

• Broad network access:

Cloud computing resources are available over the network and can be accessed by
diverse customer platforms. It other words, cloud services are available over a network
—ideally high broadband communication link—such as the internet, or in the case of a
private clouds it could be a local area network (LAN).

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 Characteristics of cloud computing(CO1)

• Multi-tenancy and resource pooling:

Cloud computing resources are designed to support a multi-tenant model. Multi-tenancy

allows multiple customers to share the same applications or the same physical
infrastructure while retaining privacy and security over their information.

Resource pooling means that multiple customers are serviced from the same physical
resources. Providers’ resource pool should be very large and flexible enough to service
multiple client requirements and to provide for economy of scale. When it comes to
resource pooling, resource allocation must not impact performances of critical
applications.

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 Characteristics of cloud computing(CO1)
• Rapid elasticity and scalability:

One of the great things about cloud computing is the ability to quickly provision resources
in the cloud as users need them. And then to remove them when they don’t need them.
Cloud computing resources can scale up or down rapidly and, in some cases, automatically,
in response to business demands. It is a key feature of cloud computing. The usage,
capacity, and therefore cost, can be scaled up or down with no additional contract or
penalties.

• Measured service:

Cloud computing resources usage is metered and users pay accordingly for what they have
used. Resource utilization can be optimized by leveraging charge-per-use capabilities. This
means that cloud resource usage—whether virtual server instances that are running or
storage in the cloud—gets monitored, measured and reported by the cloud service
provider. The cost model is based on “pay for what you use”—the payment is variable
based on the actual consumption by the user.

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 Elasticity vs Scalability

Cloud Elasticity Cloud Scalability

Elasticity is used just to meet the sudden up Scalability is used to meet the static
and down in the workload for a small increase in the workload.
period of time.

Elasticity is used to meet dynamic changes, Scalability is always used to address the
where the resources need can increase or increase in workload in an organization.
decrease.
. Scalability is used by giant companies
Elasticity is commonly used by small whose customer circle persistently grows in
companies whose workload and demand order to do the operations efficiently.
increases only for a specific period of time.

It is a short term planning and adopted just Scalability is a long term planning and
to deal with an unexpected increase in adopted just to deal with an expected
demand or seasonal demands. increase in demand.

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 Advantages of Cloud Computing

1. Cost efficiency: The biggest reason behind companies shifting to Cloud Computing is
that it takes considerably lesser cost than any on-premise technology. Now, companies
need not store data in disks anymore as the cloud offers enormous storage space,
saving money and resources.
2. High speed: Cloud Computing lets us deploy the service quickly in fewer clicks. This
quick deployment lets us get the resources required for our system within minutes.
3. Excellent accessibility: Storing information in the cloud allows us to access it
anywhere and anytime regardless of the machine making it a highly accessible and
flexible technology of the present times.
4. Back-up and restore data: Once data is stored in the cloud, it is easier to get its back-
up and recovery, which is quite a time-consuming process in on-premise technology.
5. Manageability: Cloud Computing eliminates the need for IT infrastructure updates and
maintenance since the service provider ensures timely, guaranteed, and seamless
delivery of our services and also takes care of all the maintenance and management of
our IT services according to the service-level agreement (SLA).

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 Disadvantages of Cloud Computing

1. Vulnerability to attacks: Storing data in the cloud may pose serious challenges of
information theft since in the cloud every data of a company is online. Security
breach is something that even the best organizations have suffered from and it’s a
potential risk in the cloud as well. Although advanced security measures are
deployed on the cloud, still storing confidential data in the cloud can be a risky affair.
2. Network connectivity dependency: Cloud Computing is entirely dependent on the
Internet. This direct tie-up with the Internet means that a company needs to have
reliable and consistent Internet service as well as a fast connection and bandwidth to
reap the benefits of Cloud Computing.
3. Downtime: Downtime is considered as one of the biggest potential downsides of
using Cloud Computing. The cloud providers may sometimes face technical outages
that can happen due to various reasons, such as loss of power, low Internet
connectivity, data centers going out of service for maintenance, etc. This can lead to
a temporary downtime in the cloud service.

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 Disadvantages of Cloud Computing

• 4. Vendor lock-in: When in need to migrate from one cloud platform to another, a
company might face some serious challenges because of the differences between
vendor platforms. Hosting and running the applications of the current cloud platform
on some other platform may cause support issues, configuration complexities, and
additional expenses. The company data might also be left vulnerable to security
attacks due to compromises that might have been made during migrations.
• 5. Limited control: Cloud customers may face limited control over their deployments.
Cloud services run on remote servers that are completely owned and managed by
service providers, which makes it hard for the companies to have the level of control
that they would want over their back-end infrastructure.

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 Quiz

1. Which is/are true regarding cloud computing?

(a) It does not provide ubiquitous access

(b) It provides on-demand network access

(c) Resources can not be used with no management effort

(d) None of these

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 Quiz

2. Which of the following option is a service provided by AWS?

(a) EC10

(b) EC2

(c) EC3

(d) None of the above

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 Quiz

3. Which is the biggest are of concern in cloud computing?

(a) Security

(b) Scalability

(c) Elasticity

(d) On Demand Provisioning

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 Cloud Provision

Cloud provisioning means allocating a cloud service provider’s resources to a customer. It

is a key feature of cloud computing. It refers to how a client gets cloud services and
resources from a provider.

3 Cloud Provisioning Types

• Advanced Cloud Provisioning
Also known as “post-sales cloud provisioning,” customers get the resources upon contract
or service signup. They sign formal contracts with the cloud service provider. The provider
then prepares and delivers the agreed-upon resources or services. The customers are
charged a flat fee or billed every month.

• Dynamic Cloud Provisioning

Also referred to as “on-demand cloud provisioning,” customers are provided with
resources on runtime. In this delivery model, cloud resources are deployed to match
customers’ fluctuating demands.

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 Cloud Provision

Deployments can scale up to accommodate spikes in usage and down when demands
decrease. Customers are billed on a pay-per-use basis. When this model is used to
create a hybrid cloud environment, it is sometimes called “cloud bursting.”

• User Cloud Provisioning:

In this delivery model, customers add a cloud device themselves. Also known as “cloud
self-service,” clients buy resources from the cloud service provider through a web
interface or portal. The model usually involves creating a user account and paying for
resources with a credit card. The resources are quickly spun up and made available for
use within hours, if not minutes. An example of this includes an employee purchasing
cloud-based productivity applications via Microsoft 365 or G Suite.

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 Cloud Provision Benefits

Cloud provisioning has several benefits that are not available with traditional provisioning
approaches, such as:

Scalability: The traditional information technology (IT) provisioning model requires

organizations to make large investments in their on-premises infrastructure. That needs
extensive preparation and forecasting of infrastructure needs since on-premises
infrastructures are often set up to last for many years. The cloud provisioning model,
meanwhile, lets companies simply scale up and down their cloud resources depending on
their short-term usage requirements.

Speed: Organizations’ developers can quickly spin up several workloads on-demand, so the
companies no longer require IT administrators to provide and manage computing resources.

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 Cloud Provision Benefits

Cost savings: While traditional on-premises technology requires large upfront

investments, many cloud service providers let their customers pay for only what they
consume. But the attractive economics of cloud services presents challenges, too, which
may require organizations to develop a cloud management strategy.

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 Cloud Provision Challenges

Like any other technology, cloud provisioning also presents several challenges,
including:
Complex management and monitoring: Organizations may need several provisioning
tools to customize their cloud resources. Many also deploy workloads on more than
one cloud platform, making viewing everything on a central console more challenging.

Resource and service dependencies: Cloud applications and workloads often tap into
basic infrastructure resources, such as computing, networking, and storage. But public
cloud service providers offer higher-level ancillary services like serverless functions
and machine learning (ML) and big data capabilities. Such services may carry
dependencies that can lead to unexpected overuse and surprise costs.

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 Cloud Provision Challenges

Policy enforcement: User cloud provisioning helps streamline requests and manage
resources but requires strict rules to make sure unnecessary resources are not provided.
That is time-consuming since different users require varying levels of access and frequency.
Setting up rules to know who can provide which resources, for how long, and with what
budgetary controls can be difficult.

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 Quiz

4. Which of the following is not a cloud computing platform?

(a) Microsoft Azure

(b) Amazon EC2

(c) IBM Deep Blue

(d) Google 101

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 Quiz

5. Which are essential characteristics of cloud computing?

(a) On-demand self service

(b) Resource pooling

(c) Rapid elasticity

(d) None of these

(e) All of the above

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 Quiz

6. What is Cloud Computing replacing?

a) Corporate data centers

b) Expensive personal computer hardware

c) Expensive software upgrades

d) All of the above

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 EC2 Instances

• An Amazon EC2 instance is a virtual server in Amazon's Elastic Compute Cloud (EC2) for
running applications on the Amazon Web Services (AWS) infrastructure.

• AWS is a comprehensive, evolving cloud computing platform; EC2 is a service that

enables business subscribers to run application programs in the computing
environment. It can serve as a practically unlimited set of virtual machines (VMs).

• Amazon provides various types of instances with different configurations of CPU,

memory, storage and networking resources to suit user needs. Each type is available in
various sizes to address specific workload requirements.

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 EC2 Instances

Instances are created from Amazon Machine Images (AMI). The machine images are like
templates. They are configured with an operating system (OS) and other software,
which determine the user's operating environment. Users can select an AMI provided by
AWS, the user community or through the AWS Marketplace. Users also can create their
own AMIs and share them.

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 Features of EC2 Instances

• Operating system: EC2 supports many OSes, including Linux, Microsoft Windows
Server, CentOS and Debian.

• Persistent storage: Amazon's Elastic Block Storage (EBS) service enables block-level
storage volumes to be attached to EC2 instances and be used as hard drives. With
EBS, it is possible to increase or decrease the amount of storage available to an EC2
instance and attach EBS volumes to more than one instance at the same time.

• Elastic IP addresses: Amazon's Elastic IP service lets IP addresses be associated with

an instance. Elastic IP addresses can be moved from instance to instance without
requiring a network administrator's help. This makes them ideal for use in failover
clusters, for load balancing, or for other purposes where there are multiple servers
running the same service.

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 Features of EC2 Instances

Amazon CloudWatch: This web service allows for the monitoring of AWS cloud services and
the applications deployed on AWS. CloudWatch can be used to collect, store and analyze
historical and real-time performance data. It can also proactively monitor applications,
improve resource use, optimize costs and scale up or down based on changing workloads.
Automated scaling: Amazon EC2 Auto Scaling automatically adds or removes capacity from
Amazon EC2 virtual servers in response to application demand. Auto Scaling provides more
capacity to handle temporary increases in traffic during a product launch or to increase or
decrease capacity based on whether use is above or below certain thresholds.
Bare-metal instances: These virtual server instances consist of the hardware resources,
such as a processor, storage and network. They are not virtualized and do not run an OS,
reducing their memory footprint, providing extra security and increasing their processing
power.

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 Features of EC2 Instances

• Amazon EC2 Fleet: This service enables the deployment and management of instances
as a single virtual server. The Fleet service makes it possible to launch, stop and
terminate EC2 instances across EC2 instance types with one action. Amazon EC2 Fleet
also provides programmatic access to fleet operations using an API. Fleet management
can be integrated into existing management tools. With EC2 Fleet, policies can be
scaled to automatically adjust the size of a fleet to match the workload.

• Pause and resume instances: EC2 instances can be paused and resumed from the
same state later on. For example, if an application uses too many resources, it can be
paused without incurring charges for instance usage.

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 Types of EC2 Instances

Instance types are grouped into families based on target application profiles. These
groups include the following:

• General purpose: A general purpose instance is a VM that is designed to handle a

variety of workloads. General purpose instances are optimized to have a high
number of CPU cores, on-demand storage and memory. Some common use cases
for general purpose instances include web server hosting and software
development and testing.

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 Types of EC2 Instances

• Compute optimized: Compute optimized instances are used to run big data
applications that require large amounts of processing power and memory on the
AWS cloud. These instances are designed and optimized for running computational
and data-intensive applications that require fast network performance, extensive
availability and high input/output (I/O) operations per second (IOPS). Examples of
types of applications includes scientific and financial modeling and simulation,
machine learning, enterprise data warehousing and business intelligence.
• Graphics processing unit (GPU):These instances provide a way to run graphics-
intensive applications faster than with the standard EC2 instances. Systems that
rely on GPUs include gaming and design work. For example, Linux distributions
often take advantage of GPUs for rendering graphical user interfaces, improving
compression speeds and speeding up database queries.

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 Types of EC2 Instances

• Memory optimized: Memory optimized instances use a high-speed, solid-state drive to

provide ultra-fast access to data and deliver high performance. These instances are
ideal for applications that require more memory and less CPU power, including open
source databases, real-time big data analytics and in-memory caches.
• Storage optimized: Storage optimized instances are ideal for applications that require
high I/O performance, such as NoSQL databases that store and retrieve data in real
time. They're also well suited for memory-intensive applications such as data
processing, data warehousing, analytics workloads and log processing.
• Micro: A micro instance is meant for applications with low throughput. The micro
instance type can serve as a small database server, as a platform for software testing or
as a web server that does not require high transaction rates.

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Cloud Economics
Cloud economics is the study of the benefits, costs, and principles of cloud
computing. It refers to the knowledge about the financial aspects of cloud
computing.

Cloud economics involves understanding:

• The total cost of ownership for cloud computing
• The benefits of cloud computing over on-premises models
• Cost optimization strategies when operating in the cloud.

Cloud economics is not just about costs in actual monetary terms, but also about
the opportunity costs of the cloud and the peculiarities of managing costs in a
highly dynamic environment.

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 Cloud Economics: Key Areas

Cloud total cost of ownership (TCO): TCO is the total cost of adopting, operating, and
provisioning cloud infrastructure. TCO is helpful for understanding return on investment.
Businesses have always performed TCO analysis for traditional IT infrastructure.
However, performing TCO analysis for cloud computing can be challenging because the
environment is inherently more complex and dynamic than on-premises environments.
Getting an accurate TCO for cloud computing means capturing the purchase price of on-
premises vs. cloud solutions as well as the intangible costs of either solution. In practice,
this means:
• Calculating the cost of your current IT infrastructure
• Estimating the total cost of cloud adoption (including migration costs)
• Quantifying the intangible benefits of the cloud
The overall goal is to achieve a lower TCO compared to on-premises infrastructure, but it
can also be about justifying a higher TCO by listing the intangible benefits associated
with the cloud, such as agility and greater speed to market.

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 Cloud Economics: Key Areas

CAPEX to OPEX switch

Cloud computing uses a different pricing model from traditional computing and this
affects how businesses account for cost. The move from capital expenses (CAPEX) to
operating expenses (OPEX) is a key difference, and it affects how businesses gauge
profitability in the cloud.

In traditional IT environments, computing costs are predictable and relatively fixed. A

business pays for the computing capacity it needs upfront and uses the capacity over
time. Calculating the total cost of ownership in this setup is fairly straightforward. In
contrast, cloud providers adopt a pay-as-you-go model and most services do not
require any upfront commitment.

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 Cloud Economics: Key Areas

The implication is that your business will have variable cloud computing bills that
depend on the services you use and how they are consumed. While this model
may save your business upfront capital expenditure, it can become a huge financial
suck if resources are not managed properly.

When moving to or operating in the cloud, it is important to develop and

implement cloud cost optimization strategies that will help regulate your cloud
costs. For example, CloudZero’s cost intelligence platform helps you track the cost
of migrating to AWS and thereafter provides insights that help you reduce your
AWS bill.

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 Cloud Economics: Key Areas

Elasticity:

With on-premises systems and traditional IT environments, there’s a cost associated

with anticipating demand. Traditional IT environments are built to anticipate peaks,
which means you buy and maintain excess computing capacity in anticipation of
those peak days. For most businesses, that’s a significant cost for something that’s
rarely — if ever — used.

Cloud computing eliminates the need for over-provisioning because you pay only for
what you use. Cloud computing platforms, such as AWS, dynamically allocate
resources to projects and processes, ensuring that a business has the right amount
of resources it needs at any given time. This increases cost efficiency and allows
businesses to optimize resource usage.

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 Cloud Economics: Key Areas

This elasticity is one of the most appealing aspects of cloud computing and a major
selling point when making a case for switching to the cloud.

On-demand pricing:

On-demand pricing is a fundamentally different economic approach to computing

power. Outside of the cloud, you’d buy a fixed amount of computing capacity or a
physical server that you own. But in the cloud, you switch to on-demand pricing, so
your costs become elastic.

This means cloud costs can quickly spiral out of control if you are not monitoring
them regularly and making data-driven decisions.

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 Quiz

7. Which of these companies is not a leader in cloud computing?

a) Google
b) Microsoft
c) Amazon
d) Blackboard

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 Quiz

8. Cloud" in cloud computing represents what?

a)Internet
b)Wireless
c)Hard drives
d)People

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 Quiz

9. What is the disadvantage of cloud computing?

(a) It requires constant internet connection.

(b) It does not support group collaboration.

(c) It provides limited storage.

(d) None of these

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 Quiz

10. Cloud computing is a distributed computing model.

(a) True

(b) False

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 Quiz

11. Which of the following a company must consider before moving towards
cloud computing?

(a) Employee Satisfaction

(b) Potential cost reduction

(c) Information Sensitivity

(d) All of these

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 Quiz

12. What is Cloud computing?

(a) Way to organize computers

(b) Lightweight software

(c) Computing resources that can be accessed on demand

(d) World Wide Web

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 Assignment

QUESTIONS
Q1: Define cloud computing and its advantages and disadvantages.

Q2: Explain the evolution of cloud computing.

Q3: List out the important characteristics of cloud computing.

Q4: Explain the need of cloud computing.

Q5: List out some cloud computing vendors and the services they
provide.

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 Assignment

QUESTIONS
Q.6 Describe distributed computing and parallel computing in detail.

Q.7 Explain grid computing. How it is different from cluster computing.

Q. 8 What do you understand by cloud provisioning? Discuss its types,

benefits and challenges.

Q. 9 Discuss features and types of EC2 instance.

Q. 10 Explain Cloud Economics. Discuss the key areas of cloud

economics.

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