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Technology of the New Generation: Cloud Computing

Contents
Contents..................................................................................................................... 2 Effective Information Management......................................................................3 Cloud Computing Technology..................................................................................... 4 Technology in Practice................................................................................................ 5 Methods and Procedures............................................................................................ 6 Final Conclusion.......................................................................................................... 7 References.................................................................................................................. 9

Effective Information Management Comprehensive information, which earlier use to be categorized as a luxury has now become a fundamental feature for the success and growth of industries all over the world. Quality information has become a top priority top level management. For ensuring proper efficiency in business operations and effectiveness the bulky volume based tape storage devices need to be replaced by a more robust and effective Cloud or satellite based technology. Such processes assist in reduction of cost, mitigation of risk, improvement in service levels, and fraud prevention. Improvement in care management and proper coordination in transmitting the information to the required person can be managed effectively by this outstanding information mechanism. Huge chunks of data are housed in multiple systems by the providers across the industry. 80% of organizations usually manage data repositories and approximately one in every four company handles more than 15 percent of data repositories. Around 48 disparate financial systems and 2.7 enterprise resource planning (ERP) are being operated by fortune 500 companies. Usually such systems often create difficulty in timely and accurate execution of information. For example, 79% of CIOs said that there is a redundancy in their customer or consumer data across the enterprise (February 2006 CDI Institute survey of 50 Global 5000 IT organizations) (JeJeffery, 2004). The problem is the same for all the corporate executives. In a recent survey done by an IBM Chief Executive, it has been shown that poor quality of information affects the profit ratio of the company negatively (Fitzharris, 2000).

4 Cloud Computing Technology A cloud computing environment helps in the overall reduction of the number of operational support staff, which helps in factoring the gains with the ROI between the onpremises and the cloud based implementation. Also, the importance of power supply and depreciated capital expense per application are crucial aspects which need to be considered while calculating the ROI (Computerworld). In practice, the on-premises application cost model generally includes all of these expenses, as it is often too complex to break down the power consumed on a per-application basis. The same reason stands true for cooling and floor space used. (IBM, 2010) A simple cost calculator implementation estimates the operating expense of applications hosted on the cloud based Windows Azure platform. This cost calculator takes various input parameters of a typical e-commerce application, and computes the monthly operational cost involved in using the Windows Azure platform. The cost calculator is driven by factors like the number of page visits made per month, assuming a certain number of page views and transaction and event data created over the framework. The cloud-based platform team is involved in taking a comprehensive measure of the monthly expenditure on the application and provides a comparison between the Total Cost of Operation (TCO) of an on-premises implementation with that of the cloud-based Windows Azure model (Microsoft, 2010). growth rate of transactional data

5 Technology in Practice

The crucial parametric constraints used to get a measure of the implementation cost of a cloudbased model would include the following: (Microsoft, 2010) Measuring the growth rate of reference data Measuring the growth rate of transactional data Estimating the capture rate of behavioral profiling data Estimating the growth rate of business event data Estimating the capture rate of system event data Measuring the amount of Media content related to products Effective usage of queues vs. direct interaction with persistent storage

Methods and Procedures The below diagram shows the logical architecture view of a cloud based Windows Azure implementation model with the arrows indicating the flow of data. The dashed arrows are indicative of the intra-datacenter bandwidth consumption, while the solid lines show the data flow in and out of the cloud datacenter system. (Microsoft, 2010)

Windows Azure platform like other cloud computing systems has the usage charges based on the number of roles and the amount of time an application needs for its eventual deployment. So that even if the application has no requests from end users, the Windows Azure platform billing system will keep on charging on the basis of instance-hour for both the role states suspended and started. Hence it is generally recommended, to have a proactive process plan for trimming down the number of active roles based on the demands over the application (Microsoft, 2010). Final Conclusion Assuming that around 10000GB of data is generated in any given month, we would roughly be spending $1,200 per month if they are to be store on the cloud based Windows Azure Tables. Such costs can be optimized by tuning the amount of event data captured as an application matures operationally, since the cost calculator is driven by the number of visits per month and since it uses a hypothetical number of web roles and worker roles. Also, the

8 application can be modeled to utilize the event data by paying one time bandwidth costs to an already depreciated on-premises storage system. Therefore as a whole the Cloud based implementations are always better than the clientserver based models, but the fact that the latter is a proven and more reliable technology cant be denied and thats why client servers have not been totally replaced. While the cloud computing market is growing day by day with the need for cost cutting and collaboration. Across various markets, in order for organizations to get the best out of their business the future can expect greater significance for cloud based technology and the companies which are proactive in adopting them (Boozallen, 2010).

9 References
Boozallen. (2010). http://www.boozallen.com/media/file/it-cost-and-economicmodeling-for-cloud-computing-fs.pdf. boozallen. Computerworld. (2010). Retrieved from http://www.computerworld.com/s/article/78530/ROI_Guide_Net_Present_Value ?taxonomyId=074. Fitzharris, M. A. (2000). Lock IT Down: E-mail surveillance may be a necessity at your company. Retrieved from http://articles.techrepublic.com.com/510010878_11-1042119.html IBM. (2010). Retrieved from http://www.redbooks.IBM.com/redpapers/pdfs/redp4553.pdf. IBM. (2009). Retrieved from https://www.IBM.com/developerworks/mydeveloperworks/blogs/InsideSystem Storage/?lang=en Jeffery, M. (2004). Best practices in IT portfolio management. MIT Sloan ManagemeNt Review. Judith Hurwitz, R. B. (2011). Cloud computing. Retrieved from http://www.dummies.com/how-to/content/cloud-computing-cheat-sheet.html Microsoft. (2010) . Retrieved from http://www.microsoft.com/presspass/presskits/cloud/docs/The-Economics-ofthe-Cloud.pdf