Purchase and installation costs can be capitalized for tax advantages. In con- trast, Cloud subscription can be accounted as an operating expense. Smaller or- ganizations that are short on working capital may be attracted to Cloud due to lower cost requirements during early years. With fewer users, impact of On-Premise infrastructure support may also be relatively more burdensome. Figure 2 below illustrates that by Year 3, it will typically trend less costly for an On-Premise approach, even if 1 or 2 extra FTE is deemed necessary to support On-Premise.
68 Experts experience data security and privacy concerns of the consumers of the service. Especially medium-sized firms show resistance to give up control of their data. Customers want to know where the data is stored and under which circumstances. The interviewees assure that their data centers follow higher security standards than most of their clients as data security is usually not customer’s core business. However, persuasive power is necessary to convince potential clients that CloudComputing services carefully handle their data. In fact, in times of cyber attacks, USA PATRIOT Act, and company spying, customers are afraid of losing control of confidential business critical data. Whereas, small ventures show different behavior as the benefits of CloudComputing outweighs security concerns. Another aspect is the license policy of Cloud Providers as they seem to be not transparent for potential customers. Experts claim that the clients are overstrained and need support to overcome the lack of clarity to clarify which services are included in the contract and which additional services the customer is charged for (e.g. customization). This is becoming particular complex when several services are received. Therefore, often consultants act as Service Aggregator or Multi-Supplier Integrator which task it is to bundle several services and provide them with a single contract to the consumer. Moreover, customer’s decision-makers need financial advice regarding capital budgeting, particularly, Capex and Opex. Customer need to understand that the upfront investments into e.g. hardware (Capex) are much fewer compared to on-premise solutions. The costs for operating the service (Opex) adjust themselves to the volume of business operations of the customer. Interviewees report that more and more large enterprises are interested in reducing their carbon emissions and consider CloudComputing as a way to lower their carbon footprint (environmental benefits of CloudComputing are stated in chapter 188.8.131.52.). Thus, consultation in respect of environmental impact through CloudComputing is becoming more relevant such as applying the Life Cycle Assessment. However, one needs to consider that, so far, the reduction of carbon footprint is rather seen as a side effect than the main reason for purchasing CloudComputing services. Nevertheless, achieving a climate neutral business is the vision of many companies, e.g. Siemens, and positively affects company’s reputation (Siemens AG, 2016).
Roughly half (48%) of channel firms today report currently offering some form of Build services, with another third planning to add this flavor of cloud to their lineup in the coming year. Build represents a bit of a cloud launching pad; of those firms that are also operating one of the other three cloud business models, 7 in 10 started with a with Build practice before adding the others. This makes sense if you think back three to five years ago as the industry and channel began its cloud transition. At the time, many channel firms were looking for the most obvious place to plug in, with many of them admittedly worried that cloud would disintermediate them in the market. So where did they turn in conjuring a business model that made sense? They leveraged traditional solution provider strengths in infrastructure products sales and implementation work. In doing so in a cloud context, these companies positioned themselves as builders of private clouds within existing customers’ on-‐premise environments.
Abstract—SMEs operate in competitive markets for business growth and sustainability. Information and Communication Technology (ICT) solutions have the potential to increase SMEs competitiveness thus contributes towards business sustainability. However SMEs mainly use the traditional ICT solutions to stay competitive. This leads to several challenges that they face in implementing ICT solutions, such as lack of capital, skilled staff, and so forth. The eminent challenge is that ICTs are expensive to procure and maintain. Considering these challenges, there is a need for cost-effective alternative ICT solutions that when implemented, can improve SMEs competitiveness. This paper investigates SMEs challenges regarding the adoption and use of traditional (on-premise) ICT solutions, and the potential of cloudcomputing as an alternative technology. The study adopted qualitative research approach, where case study research designs was used consisting of three SMEs. The data was collected through interviews, expert reviews, literature and questionnaires, where a total of 19 participants were used. The findings reveals that cloudcomputing happens to be a cost-effective alternative solution compared to traditional (on-premise) ICT solutions.
Abstract Organisations and enterprise fi rms, from banks to social Web, are consid- ering developing and deploying applications on the cloud due to the benefi ts offered by them. These benefi ts include cost effectiveness, scalability and theoretically unlimited computing resources. Many predictions by experts have indicated that centralising the computation and storage by renting them from third-party provider is the way to the future. However, before jumping into conclusions, engineers and technology offi cers must assess and weigh the advantages of cloud applications over concerns, challenges and limitations of cloud-based applications. Decisions must also involve choosing the right service model and knowing the disadvantages and limitations pertaining to that particular service model. Although cloud applica- tions have benefi ts a galore, organisations and developers have raised concerns over the security and reliability issues. The idea of handing important data over to another company certainly has security and confi dentiality worries. The implica- tion does not infer that cloud applications are insecure and fl awed but conveys that they require more attention to cloud-related issues than the conventional on-premise approaches. The objective of this chapter is to introduce the reader to the chal- lenges of cloud application development and to present ways in which these chal- lenges can be overcome. The chapter also discusses the issues with respect to different service models and extends the challenges with reference to application developer ’ s perspective.
Hadoop MapReduce and the LexisNexis HPCC platform are both scalable archi- tectures directed towards data-intensive computing solutions. Each of these system platforms has strengths and weaknesses and their overall effectiveness for any appli- cation problem or domain is subjective in nature and can only be determined through careful evaluation of application requirements versus the capabilities of the solution. Hadoop is an open source platform which increases its ﬂexibility and adaptability to many problem domains since new capabilities can be readily added by users adopt- ing this technology. However, as with other open source platforms, reliability and support can become issues when many different users are contributing new code and changes to the system. Hadoop has found favor with many large Web-oriented companies including Yahoo!, Facebook, and others where data-intensive computing capabilities are critical to the success of their business. Amazon has implemented new cloudcomputing services using Hadoop as part of its EC2 called Amazon Elastic MapReduce. A company called Cloudera was recently formed to provide training, support and consulting services to the Hadoop user community and to pro- vide packaged and tested releases which can be used in the Amazon environment. Although many different application tools have been built on top of the Hadoop platform like Pig, HBase, Hive, etc., these tools tend not to be well-integrated offer- ing different command shells, languages, and operating characteristics that make it more difﬁcult to combine capabilities in an effective manner.
SaaS applications are hosted in the cloud which is far away from the application users. This introduces latency into the environment. Relying on an Internet connection means that data are transferred to and from a SaaS vendor at Internet speeds rather than the potentially higher speeds of an organization’s internal network. Some business applications may require access to or integration with customer's current data and if data is large in volume or sensitive (for example: end users' personal information), integration with remotely hosted software can be costly or risky or time consuming as all the data is travelling over network so data is more vulnerable to security attacks. For example, SaaS model is not suitable for applications that demand response times in milliseconds.
In other cases, the loss of control of where your virtual IT infrastructure resides could open the way to other problematic situations. More precisely, the geographical location of a datacenter gen- erally determines the regulations that are applied to management of digital information. As a result, according to the specific location of data, some sensitive information can be made accessible to government agencies or even considered outside the law if processed with specific cryptographic techniques. For example, the USA PATRIOT Act 5 provides its government and other agencies with virtually limitless powers to access information, including that belonging to any company that stores information in the U.S. territory. Finally, existing enterprises that have large computing infra- structures or large installed bases of software do not simply want to switch to public clouds, but they use the existing IT resources and optimize their revenue. All these aspects make the use of a public computing infrastructure not always possible. Yet the general idea supported by the cloudcomputing vision can still be attractive. More specifically, having an infrastructure able to deliver IT services on demand can still be a winning solution, even when implemented within the private premises of an institution. This idea led to the diffusion of private clouds, which are similar to pub- lic clouds, but their resource-provisioning model is limited within the boundaries of an organization.
technology enables a vendor’s cloud software to automatically move data from a piece of hardware that goes bad or is pulled offline to a section of the system or hardware that is functioning or operational. Therefore, the client gets seam- less access to the data. Separate backup systems, with cloud disaster recov- ery strategies, provide another layer of dependability and reliability. Finally, cloudcomputing also promotes a green alternative to paper-intensive office functions. It is because it needs less computing hardware on premise, and all computing-related tasks take place remotely with minimal computing hard- ware requirement with the help of technological innovations such as virtual- ization and multitenancy. Another viewpoint on the green aspect is that cloudcomputing can reduce the environmental impact of building, shipping, hous- ing, and ultimately destroying (or recycling) computer equipment as no one is going to own many such systems in their premises and managing the offices with fewer computers that consume less energy comparatively. A consolidated set of points briefing the benefits of cloudcomputing can be as follows: 1. Achieve economies of scale: We can increase the volume output or pro-
Enterprises often don’t have the required expertise to build cloud-based solutions. The average medium-to-large company that has been in business for more than a few years typically has a collection of applications and services spanning multiple eras of application architecture from mainframe to client-server to commercial-off the-shelf and more. The majority of the skills internally are specialized around these different architectures. Often the system administrators and security experts have spent a lifetime working on physical hardware or on-premises virtualization. Cloud architectures are loosely coupled and stateless, which is not how most legacy applications have been built over the years. Many cloud initiatives require integrating with multiple cloud-based solutions from other vendors, partners, and customers. The methods used to test and deploy cloud-based solutions may be radically different and more agile than what companies are accustomed to in their legacy environments. Companies making a move to the cloud should realize that there is more to it than simply deploying or paying for software from a cloud vendor. There are significant changes from an architectural, business process, and people perspective. Often, the skills required to do it right do not exist within the enterprise.
Internet of things (IoT) is an upcoming technology that permits interaction between real- world physical elements such as sensors, actuators, personal electronic devices, and so on, over the Internet to facilitate various applications in the fields of e-health, intelligent transportation, and others. IoT is the convergence of different visions—things-oriented, Internet-oriented, and semantic-oriented . Radio frequency identification (RFID) and sensing components are associated with everything used in daily lives, and information is uploaded into the computer, which monitors everything. RFID is the thing that con- nects the real world to the digital world. The basic idea of IoT is the pervasive utilization of things or objects—such as RFID tags, sensors, actuators, mobile phones, and so on— which, through unique addressing schemes, are able to interact with each other and coop- erate with their neighbors to reach common goals. Wireless sensor network, RFID system, and RFID sensor network are used to collect data opportunistically . Many challenges face this upcoming technology, in which technology and social network must be united for unique addressing, storing, and exchange of collected information. A remarkable point of contact for both sensing environments and cloud is IoT, where the underlying physi- cal items can be further abstracted according to thing-like semantics . With emerging technology IoT, a new framework is introduced to converge the utility-driven, cloud-based computing . IoT provides several advantages. They are as follows:
Operating a web site that requires database access, supports considerable traffic, and possibly connects to enterprise systems requires complete control of one or more servers, to guarantee responsiveness to user requests. Servers supporting the web site must be hosted in a data center with access from the public Internet. Traditionally, this has been achieved by renting space for physical servers in a hosting center operated by a network provider far from the enterprise’s inter- nal systems. With cloudcomputing, this can now be done by renting a virtual machine in a cloud hosting center. The web site can make use of open source software, such as Apache HTTP Server, MySQL, and PHP; the so-called LAMP stack; or a Java™ stack, all of which is readily available. Alternatively, enterprises might prefer to use commercially supported software, such as Web- Sphere ® Application Server and DB2 ® , on either Linux ® or Windows operating systems. All
Closer to our goal, existing works in the area of cloud service optimization have mainly focused on the modeling and assessment of quantitative (precise) characteris- tics to enable automatic service optimization in infrastructure layer. For instance, CloudCmp has proposed a measurement methodology for quantifying and comparing the performance of cloud services in IaaS layer. In that respect, authors have first identified common services e.g. elastic compute cluster or persistent storage, offered by different providers that can be subject to comparison. Then, for each service, they have defined a set of low-level performance metrics such as benchmark finishing time, costs and scaling latency. Similarly, Han et al.  have proposed a service recommender framework using network QoS and Virtual Machine (VM) platform factors for assisting user's decisions when it comes to the selection of cloud provider. In their work, they do not consider user preferences and they limit their evaluation criteria only to IaaS specific factors. In an effort to provide automatic cloud service adaptation across different cloud platforms, Pawluk et al.  have presented the STRATOS cloud brokerage framework which addresses the problem of dynamically selecting resources from multiple cloud providers at runtime by calculating the in- duced costs and lock-in effect using a quantitative model. These approaches focus on the service optimization in IaaS layer and they do not address the problem of service evaluation in multiple quantitative and qualitative dimensions taking into account the uncertainty or vagueness.
Not everyone agrees with the view that an oligopoly or a cartel is about to be born. Some maintain that, even with continuous price cuts, Amazon will face stiff competition from within and outside the major cloud providers, including from small innovative companies. There are also concerns about Apple’s ability to enjoy elite status in the cloud. Analysts point to the difficulty the company has experienced in making its bedrock iTunes service meet the promise of seamless integration and synchronicity across platforms. Moreover, the company has not expanded its services with offerings that have earned Google and Microsoft the reputation of general cloud-server companies. Also, while everyone agrees that Microsoft has succeeded in building on its success in business services as it has moved to the cloud, doubters wonder whether Windows 8 and SkyDrive will succeed in creating a major cloud-computing presence in the consumer market (Cloud Tweaks 2012). Some also insist that many companies, seemingly beaten by the new Big Four (or Five, if you include Apple), have the capacity to fight back and are beginning to do so. These include big broadcasters who have seen their audiences diminish in the expansion of digital social media. According to one analyst, “But as more and more Internet-connected smart televisions find their ways into people’s homes, broadcasters see a new opportunity to remain at the center of the global ad industry” (Steel 2012b). They can do so partly because the new wave of Internet-connected televisions permits broadcasters like CBS to sell new forms of advertising to direct marketers who do not typically purchase commercial advertising because they focus on coupons, search ads, and direct marketing. Internet-enabled television receivers permit broadcasters to add web advertisers to the brand advertising that built the industry. Broadcasters now capture only $10 billion of the $60 billion spent annually on direct marketing. But the shift to Internet television has the potential to enable broadcasters to expand that share and enter new markets. So while it is likely that there is some hyperbole in the statement by a CBS researcher that this will usher in “a new golden age of network television,” it does indicate that “legacy” companies like NBC, CBS, and ABC will have something to say about the emerging consumer cloud cartel (ibid.).
When working at scale, as you are likely to do with a private cloud implementation, strongly consider standardization of your server hardware models and purchasing groups of serv- ers together. Not only does this approach guarantee you’ll have compatible CPU generations and identical hardware, it makes your deployment process simpler. You can use tools like Autodeploy and host profi les to deploy and redeploy your servers. Likewise, using DHCP rather than static IP addressing schemes for vSphere servers becomes more appealing. vSphere 5.1 with Autodeploy also allows you to deploy stateless vSphere hosts, where each node is booted from the network using a Trivial File Transfer Protocol (TFTP) server. The host downloads the vSphere hypervisor at boot-time and runs it in RAM; then it downloads its confi guration from the Autodeploy server.
In 1997, Professor Ramnath Chellappa of Emory University, defined cloudcomputing for the first time while a faculty member at the University of South California, as an important new “computing paradigm where the boundaries of computing will be determined by economic rationale rather than technical limits alone.” Even though the international IT literature and media have come forward since then with a large number of definitions, models and architectures for cloudcomputing, autonomic and utility computing were the foundations of what the community commonly referred to as “cloudcomputing”. In the early 2000s, companies started rapidly adopting this concept upon the realization that cloudcomputing could benefit both the Providers as well as the Consumers of services. Businesses started delivering computing functionality via the Internet, enterprise- level applications, web-based retail services, document-sharing capabilities and fully-hosted IT platforms, to mention only a few cloudcomputing use cases of the 2000s. The latest widespread adoption of virtualization and of service- oriented architecture (SOA) promulgated cloudcomputing as a fundamental and increasingly important part of any delivery and critical-mission strategy, enabling existing and new products and services to be offered and consumed more efficiently, conveniently and securely. Not surprisingly, cloudcomputing became one of the hottest trends in the IT armory, with a unique and complementary set of properties, such as elasticity, resiliency, rapid provisioning, and multi-tenancy.
Expedia, Travelocity, Orbitz, Kayak, CheapoAir, Bestfares, MakeMyTrip.com, Cleartrip, and Carlson Wagonlit Travel are a few of the many travel and hospitality portals that offer elegant services via an interactive portal with a rich web experience for all travel and hospitality needs, breaking physical boundaries. We no longer need to visit any physical ofﬁces to accomplish these jobs—we can do so with the use of smart devices from anywhere at any time. MakeMyTrip.com is an example in the travel and hospitality industry to establish rapid growth over a decade, crossing the limit of geographical boundaries and leveraging these major technologies. The company was founded in the year 2000 with the aim of empow- ering Indian travelers with instant booking and comprehensive travel and hospitality packages in one web environment. It aimed to offer a range of best-value products and services based on leading technol- ogies for interactive customer engagement supported by round-the- clock support staff. With greater customer engagement based on cloud deployment, the company expanded its reach to global cus- tomers, breaking all geographical boundaries, and today it is extremely successful among Asian diasporas globally, including those in the United States, Australia, Europe, the Middle East, and Africa. Software Development Leverages
Commonly, agility, delivery speed, and cost savings entice companies to public clouds. Public cloud, for example, can free a company from having to invest in consolidating, expanding, or building a new data center when it outgrows a current facility, Kavis says. IT really doesn’t “want to go back to the well and ask management for another several mil- lion dollars,” thus it dives into the public cloud, he says. Stadtmueller says the public cloud is the least ex- pensive way to access compute and storage capacity. Plus, it’s budget- friendly because up-front infra- structure capital investments aren’t required. Businesses can instead align expenses with their revenue and grow capacity as needed. This is one reason why numerous startups choose all- public-cloud approaches.