CLOUD COMPUTING

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Information Systems

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Oct 30, 2023

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CLOUD COMPUTING Over the last decade, the biggest thing to change ERP systems, is cloud computing. Cloud computing: a model for enabling ubiquitous, convenient, on-demand network access to a shared pool of configurable computing resources that can be rapidly provisioned and released with minimal management effort or service provider interaction. This cloud model is composed of: 5 Essential characteristics. 1) On-demand and self-service. The consumer can provision the computing and network resources as needed without requiring any human interaction. The consumer is self-serving and requires no human interaction in order to determine what resources they need 2) Broad network access. Capabilities should be deployed over standard network. It should also be accessible and usable through variety of devices. 3) Resource Pooling: the service provider physical and virtual resources, are all pooled to serve multiple consumers across locations and/or devices. Every service provider has one or more locations, has bunch of resources and they are shared across multiple customers. These are not dedicated resources for one single customer. That is what makes Cloud so attractive. 4) Rapid elasticity. Capabilities can be elastically provisioned and released rapidly. As demand changes the capabilities that are deployed towards its customer's needs should change automatically and quickly. As my demand increases, so does the resource allocation to me. 5) Measured service. Cloud system can automatically control and optimize resource use. Resources can be metered, monitored, and reported transparently to both provider and consumer. The metering must be transparent, done automatically and equally visible to the consumer as well as the service provider. 3 Service Models 1) Infrastructure as a Service (IaaS): Vendor provides the client pay-as-you-go access to storage, networking, servers, and other computing resources in the cloud. 2) Platform as a Service (PaaS): A service provider offers access to a cloud base environment in which users can build and deliver applications. The provider supplies underlying infrastructure. (IaaS + offers development environment)
3) Software as a Service (SaaS): Service provider delivers software and applications via the internet. Users subscribe to software and access it via the web or vendor APIs. (PaaS + whole suit of application available via internet & users subscribe) Problems Cloud Addresses Infrastructure Planning and Deploying: With time there is some forecasted infrastructure demand. The gap between deployed resources and actual demand is an unacceptable surplus. There's also an unacceptable deficit when we do not have enough capacity to meet the needs. Ideally, we would like a utility type of a model Software Licensing and Tracking: o Tracking purchase and usage of software license. With coordination across all of these unit, then to some degree the licenses and the usage can be tracked appropriately. o Software Licensing Terms or End-user Licensing Agreement (EULA) Maintaining track of all of these terms, and whether or not appropriate inventory exists can be a huge undertaking. Beyond the complexity of software licensing, a subscription-based system would be far more attractive because of the metering aspect of it. The moment the metering kicks in, the tracking automatically happens. Hardware. Big undertaking in tracking every piece of hardware owned, lifecycle-based updates, large number of standardized device configurations, and there is not so small risk of compatibility issue with software & high support cost to ensure high availability. o Software compatibility. Cloud can solve this problem with virtualization Where a virtual PC has all hardware and software characteristics that a particular software is known to be compatible with. It simplifies testing and upgrading with minimal risk. o The more complex the hardware is the bigger the support tickets. This is another big factor that drives decisions towards cloud computing o Data storage, Backup and Accessibility: Cloud architecture has a certain advantage: default architecture of a cloud requires minimum of two backups and has security against ransomware, virus. A hardware’s software maintenance, the associated cost, the competency, and the problems associated with it, as well as the complexity, makes cloud more attractive to enterprise users. Cloud Computing Benefits. (cost savings). Subscription versus an upfront cost. subscription and pay as you go as needed. Licensing costs are metered. Hardware is sized to need and metered Eliminates need for facility planning and maintenance of complex IT infrastructure.
Reliability is claimed to be higher (99.999%) System fragmentation, maintenance, patching, and testing are simplified in a cloud. Cloud Computing Considerations Adoption. Every firm must define its strategy for migrating to a cloud, the business outcomes, the justifications and prioritize which projects. Planning is critical. Once ready, adopt, migrate, and innovate. Throughout good governance and management is needed. Strategic considerations: security, privacy (who has access) and reliability (cloud glitches can cause disruptions). There are also long-term implications (meaning once migrated to cloud then what) and legal ramifications. Cloud Computing New Developments Follow the user: A productivity paradigm, allows users to move seamlessly from one device to another and carry on exactly what they are doing (MS Office, Browser, Airdrop). This allows for big amount of integration ability with 3rd parties services, Data sharing/process integration is easier, integration of various enterprise applications.
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