Projectacronym: NEBULA
Projectname: Anovelvocationaltrainingprogrammeoncloud computingskills Projectcode: 540226-LLP-1-2013-1-GR-LEONARDO-LMP
Document Information
Document IDname: Nebula_WP4_D4.3.1_Learning_Material_and_Content_2015_30_04 Document title: NebulaVETprogramlearningmaterialandcontent
Type: Slides
DateofDelivery: 30/04/2015 Workpackage: WP4
Activity D.4.3.1 Disseminationlevel: Public
Document History
Versions Date Changes Typeofchange Deliveredby Version1.0 15/04/2015 InitialDocument - UCBLand INSAofLyon Version2.0 26/06/2015 Edition
Modificationsaccording tofeedbackprovidedby
partners
UCBLand INSAofLyon
Acknowledgement
The personsof UCBLin chargeof producingthe course areParisa Ghodous, CatarinaFerreira DaSilva,Jean Patrick Gelas and Mahmoud Barhamgi. The persons from UCBL involved in preparing, translation and reviewareHindBenfenatki,GavinKempandOlivier Georgeon.
Thepersonsof “INSAofLyon”in chargeofproducingthe courseareFrédériqueBiennier, NabilaBenharkat. The persons from INSA of Lyon involved in preparing, translation and review are Francis Ouedraogo and Youakim Badr.
Disclaimer
Theinformationinthis documentis subjecttochangewithoutnotice.All rightsreserved.
The course is proprietary of UCBL and INSA of Lyon. No copying or distributing, in any form or by any means, isallowedwithouttheprior writtenagreementofthe ownerofthepropertyrights. Thispublication reflects the views only of the author, and the Commission cannot be held responsible for any use, which
Module 2 objectives
The aim of this module is to provide the
student with the capabilities to understand
the cloud business models and the
economic impact of these models
---Note: due to intellectual property reasons, the logotype of
UCBL must remain in all utilisation of this course content,
as well as the note “copyright DUNOD” mentioned in some
slides with figures.
OVERVIEW
Part 1: Cloud service model
Part 2: Business model enactment
Part 3: Integration of contractual relationships
Transversal part: Communication and interpersonal
Economic model impact and cloud
management
According to you, What do you pay for
when you buy a Cloud offer?
• Can you define exactly what is the offer you
buy and why you’ve bought it?
• What is the industrial organisation behind the
Cloud service production?
• How can you characterise the Cloud value
chain?
According to you, How can you
characterise a Cloud service?
• In this part you will
– Learn basic elements to characterise Cloud
context to be able to select an adapted Cloud
offer
– Learn how to organise a Service production
system
PART 1 OVERVIEW
1. Context
2. Services and service production
3. Organisation of the value chain
According to you, How can you select a
Cloud offer?
• Can you define what cloud is?
• How can you classify Cloud models?
• Do you know some Cloud providers?
According to you, How can you select a
Cloud offer?
• In this part you will
– Learn basic elements to characterise Cloud
services
– Get an historical perspective on Cloud Computing
– Get information on different Public Cloud offers
– Apply this knowledge to define a target Cloud
Cloud computing?
• Cloud computing…
– A “down to earth” reality
• Principle : resource sharing (storage, processing…) available through the network
• On demand possible reconfiguration
– A set of technologies
• Virtualization
– Creating a “logical machine” (virtual machine) deployable on a physical machine.
– Requires a specific layer to manage virtual machines on top of the operating system.
• Communication
Models in the cloud…
• Cloud covers different things…
Public Private Community Hybride IaaS (Infrastructure as a Service)
PaaS (Platform as a Service) SaaS (Software as a Service)
On-demand Service
Elasticity Measurable services
Deployment model Service model
Why does the Cloud emerge now?
• Conjunction between
– Organization strategy of Information Systems
• Seen as a cost
• Can be outsourced
– Industrialization of Information Systems
• Middleware
• De facto Standards
– Development of communication tools
• Decreasing and low costs
Evolution of computer
architectures
• Years 60 / 70:
– File management systems / hierarchical databases – Centralization
– Repetitive activities • Years 80 - 95
– Relational databases -> May be opened / SQL interoperability? – PC
– Distributed architectures
– Apparition of large scale software packages • Years 95 / 2000
– Back to centralization – ERP
– Paradox:
• Centralization of the information system vs distributed decision • Today
– Web 2.0, SOA
– Distribution / externalization – Industrialization
Evolution of needs
• Years 60 - 70:
– Programing is an art! – High ownership costs
– Development of languages, databases, files systems – Industrial organization of IT production.
– First attempts towards multi-media… • Years 80 - 95
– Relational databases -> openness provided by SQL – Object Oriented Programing
– Software packages and “on the shelf” offers – First step to industrialize of software production • Years 95 / 2000
– Large scale software packages
• Minor purchasing costs • Major parametrization costs
– “Proprietary” environments – “Framework” development
– Start industrialize software production environment • Now
– Communication costs decrease – Middleware logics
– Pay per use
– Open source software development (see figure)
Public Cloud: the offers
• Several offers by the major internet actors – Exploit their unused resources.
• Scaled for peeks of demand
• World wide management exploits time zone differences – Company business positioning
• “Professionalization” of the Web • Web service architectures
– Capturing clients and users
• Management of “free to use” services
– Bargain on the activity growth
• “Captive customer” vision
– Software specificity (data …)
Typology of offers (1)
• Historical actors…
– Offer built to sell hardware – IBM, HP…
• Rationalize hosting platforms
– Public or private
– Secured data centers management
• Purely proprietary solutions
• Actors with professional ambition
– Aim at making a software model profitable – Microsoft
• IaaS / PaaS / SaaS offers
– Saleforce
Typology of offers (2)
• Other Clouds of constructors…
– DELL
• IaaS Offer
– Launching of a VMWare platform – Abandon of public cloud in May 2013
– Launching of private cloud with SUSE in 2013…
• Offer to support your Cloud
– Objective of selling hardware
– Selling added value services for the management of IaaS type platforms
Typology of offers (3)
• (Big) actors of the Internet
• PaaS solution
– Google Apps Engine
– Traditional tools (Python, Java, PHP…) – But a personal data model…
» NoSQL
» decommissionning problem • SaaS Solution
– Google Apps
» Mail, storage, agenda… – collaborative vision
• A unique model
– Free for basic (mass) use – Pay per use
Typology of offers (3)
• (Big) actors of the Internet
– Yahoo
• An e-mail offer • Sherpa
– NoSQL data storage – REST services
• An evolving offer
– Dropbox
• At the beginning: accessible memory stick
• Offer extension towards directory management • Data storage
• Free or on subscription
Typology of offers (4)
• (Big) actors of the Internet
– Storage, MicroBlogging – Social network dimension
• For the wider public
• To set a “showroom” for the company
– Facebook – Twitter
– API publication
• The stakes
– Data = Oil of the third millennium
– Data conservation… e.g. Storage in Sweden « green » version for Facebook
Typology of offers (5)
• Sovereign Clouds
– Face the Patriot Act
• Support from the government • Business intelligence stakes
– Make the existing infrastructures profitable
• Telecom operators • Internet actors
– Land planning ?
• Keep data centers in different areas
– Maintain local activity
Typology of offers (6)
• Sovereign Clouds
– CloudWatt
• Orange and Thales with government support (Andromède project)
• Offers (under development)
– IaaS (openstack) – Data Storage
– Collaborative space
• What is sold
– VM or storage
– Cloudwatt box (collaborative space)
• Target
– Companies or general public
Typology of offers (7)
• Sovereign Clouds
– Numergy
• Owned by SFR (47%) / Bull (20%) / Caisse des dépôts (33%) • Offer
– IaaS
– Data storage
• What is sold
– VM or storage in one of the 3 data centers – Security
– Exploitation – Bandwidth
• In fact: a Lego to build your Cloud
– Address big organizations
Typology of offers (8)
• New actors
– IaaS / PaaS / SaaS sector
– Suppliers:
• Software service companies
• Small business/ startups in software development – Follow their clients demand
» SaaS: Business area dependent ERP, workflow... » PaaS: provide their development environment » IaaS: Make secured data centers profitable
• Software affiliate companies seek to increase their benefits – “Community” vision
– Banks, supply chain… • Actors of the Internet
Application: Identification of the type
of target offer
• Use case presentation: based on the migration
use case, try to identify the target cloud
Public cloud or private cloud?
• Public cloud
– Resources “offered” by the host
– No (or rather poor) control on the localization
– Outsourcing logic
• Private cloud
– Private use of resources provided by hosting companies
– Allows to control the location
– Use the company’s resources as a cloud
• Allows optimizing their use • Increase operating safety
New stakes
• XaaS strategies
– X for…
• Infrastructure • Platform • Software • Data • …– Pay per use
• Avoid initial investment
• Automatic adjustment to consumption
– Risks according to scale factor…
– Extension of the notion of operator
Motivations for a private could
• Exploitation
– Allows to centralize the infrastructure
– Reduces the number of physical equipment – Eases swapping management
• Profitability
– Organizes the infrastructure as a service – Allows hosting other services
– Scaling gain on
• Investments • Exploitation
– Consumptions
– Human resources for exploitation – …
Motivations for public cloud
• Exploitation
– Benefits from a protected hardware environment – Allows adjusting necessary resources
– Exploitation outsourcing
– Versioning management/ upgrades • Profitability
– Avoid investments – Reduced costs?
• Depends on requested size of the system… • Risks
– Data sharing?
Motivations according to the service
level (1)
• IaaS
– Transform investment into operating costs for outsourcing
strategies
– Industrialised organization of operation
– Better availability
– Separate hardware costs from operating costs
• PaaS
– Complies with EA frameworks
– Facilitates the creation of a development environment
– Takes advantage of the platform’s behaviors
Motivations according to the level of
services (2)
• SaaS
– Avoids all investment costs (hardware and software)
– Improved sharing abilities for collaborative business
– Risks on the data
• BPaaS
– Avoids configuration costs
– Community approach
According to you, What do you pay for
when you select a Cloud offer?
• Do you buy a product, a service or a mix?
• What are the key elements to take into account to
produce services?
• What is the client implication in the service
production?
• What should be taken into account to size the
system?
According to you, What do you pay for
when you select a Cloud offer?
• In this part you will
– Learn basic elements on product-service systems
– Learn basic characteristics of service production
system (names servuction)
– Get information on service production
management
– Apply this knowledge to set a Cloud service
production system
Tentative definition of a service
• Definition by opposition with
– Tertiary sector
• Do not belong to the primary sector: agriculture and fishing • Do not belong to the secondary sector: industry
– Product vs service
• Tangible vs intangible
• Software and information
– Product: « tangible » goods : hard / soft / telecom
– Services: intangible goods
• Data
• Specific studies
Product – service organization
• Shostack Matrix (1977)
• IT adaptation
Salt
Carbonated drinks TV-HIFI
Ready to wear
Fast food restaurant Caterer Tailored clothes Oil change Education Services Product Family PC On-the-shelf software X-Play offer Professional PC Mainframe ERP Specific development Services Produit
Servuction: production of services
• Servuction = Production system to produce services – Integrates the role of the client
– Separate front office
• Contact with the client • Hardware and staff – Internal organization
• Can be industrialized
• Rational process organization
• Based on Eiglier and Langeard’s model (in 1987)
Servuction in the IT context (1)
• Parameters to take into account
– Client relation
– Where is achieved the service
• At the client’s place • In the service company
– Level of expertise of the service
• Low
• High: need headquarter support
– Repeatable process?
• Process standardization • Possible industrialization?
Servuction in the IT context (2)
• Front office / back office separation
– Front office: interacts with the client
• Studies
• TMA at the client’s place
• Development done at the client’s place
– Back office
• Expertize center
• Remote maintenance • Remote development
• Industrial rationalization of the back office
– Outsourcing
– Offshoring
Client’s implication
• Service is defined as an interaction between the service company and its client
– Commercial relation
• Contractual dimension
• Can be separated from the execution
– “Services meeting” (defined by Czepeil in 1980) • During the production of a service
• Interaction with the system of service (staff/equipment)
• Different types of relation
– Dominant – Dominated
• Different types of participation
– Active – Passive
Client’s role (1)
• Different roles
– Definition of the service – Promotion
– Innovation (demand of new services) – Control of the service provision
– Realization (partial) – Consumption
• Benefits for the client
– Match the needs – Cost
Client’s role (2)
• Management of functions
– 2 dimensions to take into account: • Co-production
– Who achieve the work
» Low co-production when the client or the provider achieve separately the (quasi) full work
» Strong co-production when the client and the provider collaborate to produce the service
• Co-steering
– Who control the system
» Low co-steering when the control is achieved only by the client or by the provider » Strong co-steering when the client and provider collaborate to control the system
Management of servuction
• Different problems
– Back-office organization
• Possible industrialization • Sub-contracting
• “Balance” amongst the different missions
– Front office Organization
• Pressure from the client • Possible to standardize?
• Demand management
– Just in time organization
Production management logics
• Production managent
– Inventory based management: seasonal variation – Pushed flow management: know the demand – Just in time
• A service is ephemeral – Cannot be stored
• Just in time logics – Resource management?
• Act upon the demand
– Yield management • Suppliers? – Staff » Competencies – Management of relations » outsourcing » Depend on contracts time Required Resources
Offer of Information Technology (IT) services
• Typology of IT companies (adapted from Vogler 2004: Management stratégiquedes services p. 49) Technologies (How) Clients (Who) Applications (what) Flat rate software Facilities Mgt Small business Industrial Group Other ICT Organization Project team Specialized resellers Flat rate
Cloud and servuction
• Different problems
– Back-office organization: Operation
• Choice of technologies
• Optimization of resource use • Management of operation teams
– Front office organization
• Packaging of offers • Elasticity
• Access to support
• Demand management
– Contact point for the services
• One-time SLA
• BLA are more complex
Sizing
• Take the needs into account
– Average
– Consumption peeks
• Saturation points
– Increasingly powerful processors but… – Bottlenecks
• Memory and swap areas – Bottlenecks for QoS
• Disk access • Network
• Stakes
– Charge balancing
Case study
• Construct a production system to support a
IaaS offer
– Identification of necessary resources
– What do we offer to the client?
Infrastructure management (1)
• Data center
– Hardware hosting
• Electric supply • Air conditioning– Racks
• Or units in Racks!– Network connection
• Reserved bandwidth per client • IP address management
• Host’s private network
– Operation staff
Infrastructure management (2)
• Hardware
– Servers
• Computational power and available memory • Access
– Persistence
• Disk type
– SSD for high speed access
• Think about the number of axis…
– Volume is not everything
• Connection of equipment
– Fiber channel, …
– Mirroring: possible or not
According to you, How can you
evaluate a service value?
• Do you know some value-chain models?
• How can a provider evaluate the value chain of its
offers?
According to you, What do you pay for
when you select a Cloud offer?
• In this part you will
– Learn basic elements on value chain models
– Learn how to integrate the service production
process in the value analysis
– Get information on the elements to integrate in a
Cloud service value chain
– Apply this knowledge to analyse a Cloud service
value
Value chain
• Porter’s model (defined in 1985)
• Company’s static organization through the value chain – A combination of 9 generic activities
– Bring value to the client
• Complete process analysis – Demand
• Well identified • Stable
– Looking for efficiency • Cost reduction • Problems
– Agility?
– Other efficiency criteria? – Price adjustment?
• Towards a network model
Company’s infrastructure Human resource management
Research and development Purchase S u p p o rt a c ti v it ie s B a s e a c ti v it ie s S u p p ly l o g is ti c s F a b ri c a ti o n L o g is ti c s m a rk e ti n g M a rk e ti n g a n d s e lls Se rv ic e s Mark-up
Towards a networked value model
• Introduced by Allee in 2002 • Key points
– Competition based upon:
• Performance (cost/ speed…) • Quality
– Business process driven by the value perceived by the client • Centered on client
• Principal flow from the client towards the supplier • More « volatile » demand
– The process is controlled by the user – Encourage innovation
– General optimization
– Transparent and partnership-oriented • Take exchanges into account • Not one-way exchanges
– Tangible and intangible value creation – Give great importance to knowledge
Value analysis (1)
• Traditional approach
– Cost analysis
– Add a margin
• Centered on the clients
– For what are they ready to pay?
• Impact on their « process » • Exact answer to their needs
– Assessment covering all the actors
– Evaluate necessary customization
• Niche market
Value analysis (2)
• General analysis of different value chains
– Assessment according to the process
• Logics based on flows • Analysis of waste points
– Analysis of flows convergence and synchronization
• Flow pulled from the client to the raw material • Analyze the size of lots
• Identify the waste points
– Continuous improvement
Organization of the servuction process
• Organization step carried out after the analysis of the value
chain
– Identification of the object
– Organization of the flow including design, order, and the product itself – Globally rethink the process
• Avoid the sources of wastes
• Deploy quality function by function
– Integrate support processes
• Organize the process
– Continuous flow
– Management of task complexity – Smoothed schedule
Organization of global chain
• Cloud or Clouds
– Distributed system
• Access by the client • Distribution of resources – Different offers • Hardware • Platform • Software brick – Multiples actors • Limits of responsibility
• Vision of the client
– Depends on the area covered by the supplier – Advice obligation of the provider
Software bricks to build a cloud (1)
• At the beginning
– Manage the virtual machines
• Hypervisor
• Supervision « by hand »…
• But also manage the resources and the provisioning
– Orchestration of resources
• Cloud operating systems
• The infrastructure is seen as a software system
– Tools for composition and provisioning – Help for deployment
• Integration of middleware to support the platform
Software bricks to build a cloud (2)
• How to access the resources in the cloud?
– Importance of the network
• Between the client and the provider • Between the nodes of the provider
• Bricks providing added value
– Security
– Management of supervision charges – Support
• Importance of integrating the wall connection chain
– From the client’s computer to the cloud resource
Case study
Analysis of an offer
• Identify what is looked for
– Sold object
– Level of service
– Obligation of service
• Identify how to carry it out
– Choice of technologies
– Impact on the means
• Evaluation of the value
Cloud computing offers: attention
points (1)
• Target performance level
– “Cost” of virtualization
– Possibilities of connections… – Ease to deploy
• Confidentiality management
– Who owns the hosted data? – Access protection
– Different protection depending on the physical location…
• Reversibility
– Interoperability of data
Cloud computing offers: attention
points (2)
• Cost management
– Related to the specificity of the development
– Logics of the Pay-per-use model
• Duration of the subscription • Pricing policy
• Hidden costs
– Transferring / Getting back data – I/O vs storage
– Threshold on users number, bandwidth…
• Evolution in the SLA
– Connection to the resources
• Management of subscription