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************Separate document for each assignment*********

Assignment 1:

Read the attached textbook: Jamsa – Chapter 16, 17, 18 , 19 and 20

List possible training requirements for an SaaS solution integration, a PaaS application migration, and an IaaS application migration.

List and describe budget considerations one should evaluate before moving an application to the cloud.

Mandatory – Refer to the attached textbook content and use it for completing assignment. The textbook content should be visible in the assignment.

Requirement:

Minimum 600 words. Cover sheet, abstract, graphs, and references does not count.

Add reference separately for each assignment question.

Double Spaced and APA Format

No plagiarized content please! Attach a plagiarized report.

Check for spelling mistakes!

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Assignment 2:

Read the attached textbook: Jamsa – Chapter 16, 17, 18 , 19 and 20

Discuss why the system maintenance phase is often the most expensive phase of the software development life cycle.

Mandatory – Refer to the attached textbook content and use it for completing assignment. The textbook content should be visible in the assignment.
Requirement:

Minimum 300-350 words. Cover sheet, abstract, graphs, and references does not count.

Add reference separately for each assignment question.
Double Spaced and APA Format
No plagiarized content please! Attach a plagiarized report.
Check for spelling mistakes!

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Assignment 3:

Reading assignment – Cloud in 2020

https://www.ibm.com/blogs/cloud-computing/2019/12/12/cloud-2020-trends/

Question: Discuss how the cloud will impact future operating systems.

Mandatory – Refer to the attached textbook content and use it for completing assignment. The textbook content should be visible in the assignment.
Requirement:
Minimum 300-350 words. Cover sheet, abstract, graphs, and references does not count.
Add reference separately for each assignment question.
Double Spaced and APA Format
No plagiarized content please! Attach a plagiarized report.
Check for spelling mistakes!
$5 max. Please bid if you agree.

Brief Contents
Preface
Chapter 1 Introducing Cloud Computing
Chapter 2 Software as a Service (SaaS)
Chapter 3 Platform as a Service (PaaS)
Chapter 4 Infrastructure as a Service (IaaS)
Chapter 5 Identity as a Service (IDaaS)
Chapter 6 Data Storage in the Cloud
Chapter 7 Collaboration in the Cloud
Chapter 8 Virtualization
Chapter 9 Securing the Cloud
Chapter 10 Disaster Recovery and Business Continuity and the Cloud
Chapter 11 Service-Oriented Architecture
Chapter 12 Managing the Cloud

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Chapter 13 Migrating to the Cloud
Chapter 14 Mobile Cloud Computing
Chapter 15 Governing the Cloud
Chapter 16 Evaluating the Cloud’s Business Impact and Economics
Chapter 17 Designing Cloud-Based Solutions
Chapter 18 Coding Cloud-Based Applications
Chapter 19 Application Scalability
Chapter 20 The Future of the Cloud
Glossary of Key Terms
Index
Credits

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Contents
Preface
Chapter 1 Introducing Cloud Computing
Web 2.0 and the Cloud
Distinguishing Cloud Types
Cloud Deployment Models
Cloud Service Models
Exploring Uses of the Cloud
Introducing Scalability
Introducing Virtualization
Collecting Processing Power Through Grid Computing
Chapter Summary
Key Terms
Chapter Review
Chapter 2 Software as a Service (SaaS)
Getting Started with SaaS
Understanding the Multitenant Nature of SaaS Solutions
Understanding OpenSaaS Solutions
Understanding Mashups
Understanding Service-Oriented Architecture (SOA)
Chapter Summary
Key Terms
Chapter Review

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Chapter 3 Platform as a Service (PaaS)
IT Evolution Leading to the Cloud
Benefits of PaaS Solutions
Disadvantages of PaaS Solutions
Chapter Summary
Key Terms
Chapter Review
Chapter 4 Infrastructure as a Service (IaaS)
Understanding IaaS
Improving Performance Through Load Balancing
Taking a Closer Look at Load Balancing
System and Storage Redundancy
Utilizing Cloud-Based NAS Devices
Advantages of IaaS Solutions
Server Types Within an IaaS Solution
Chapter Summary
Key Terms
Chapter Review
Chapter 5 Identity as a Service (IDaaS)
Understanding Single Sign-On (SSO)
Understanding How SSO Works
Understanding Federated Identity Management
Understanding Account Provisioning
Understanding OpenID
Mobile ID Management

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Chapter Summary
Key Terms
Chapter Review
Chapter 6 Data Storage in the Cloud
Examining the Evolution of Network Storage
Understanding Cloud-Based Data Storage
Advantages and Disadvantages of Cloud-Based Data Storage
Getting Past the Fear of Cloud-Based Data
Cloud-Based Backup Systems
Understanding File Systems
Industry-Specific Cloud-Based Data Storage
Cloud-Based Database Solutions
Cloud-Based Block Storage
Chapter Summary
Key Terms
Chapter Review
Chapter 7 Collaboration in the Cloud
Collaborating in the Clouds
Questions to Ask About Collaborative Tools
Web-Based Collaboration Began with Web Mail
Instant Messaging Isn’t What It Used to Be
Cloud-Based Phone and Fax Systems
Revisiting File Sharing
Editing Shared Files Within the Cloud
Collaborating via Web Logs (Blogs)

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Collaborative Meetings in the Cloud
Virtual Presentations and Lectures
Using Social Media for Collaboration
Using Cloud-Based Calendar Management
Using Streaming Video Content to Collaborate
Cloud-Based TV Content
Chapter Summary
Key Terms
Chapter Review
Chapter 8 Virtualization
Understanding Virtualization
The History of Virtualization
Leveraging Blade Servers
Server Virtualization
Desktop Virtualization
Desktop Solutions on Demand
Virtual Networks
Data Storage Virtualization
Not All Applications Are Well Suited for Virtualization
Why Virtualize?
Chapter Summary
Key Terms
Chapter Review
Chapter 9 Securing the Cloud
General Security Advantages of Cloud-Based Solutions

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Introducing Business Continuity and Disaster Recovery
Understanding Data Storage Wiping
Understanding Distributed Denial-of-Service (DDoS) Attacks
Packet Sniffing
Man-in-the-Middle Attack
Monitoring Device Screens
Malicious Employees
Hypervisor Attack
Guest-Hopping Attack
SQL-Injection Attack
Physical Security
Chapter Summary
Key Terms
Chapter Review
Chapter 10 Disaster Recovery and Business Continuity and the Cloud
Understanding the Threats
Threat: Disk Failure
Threat: Power Failure or Disruption
Threat: Computer Viruses
Threat: Fire
Threat: Floods
Threat: Disgruntled Employees
Threat: Lost Equipment
Threat: Desktop Failure
Threat: Server Failure

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Threat: Network Failure
Threat: Database System Failure
Threat: Phone System Failure
Understanding Service-Level Agreements
Measuring Business Impact: The Essence of Risk Mitigation
Disaster Recovery Plan Template
Chapter Summary
Key Terms
Chapter Review
Chapter 11 Service-Oriented Architecture
Understanding Service-Oriented Architecture
Web Services Are Not Web Pages
Many Companies Provide Web Services
Discovering Web Services
Understanding Web Service Performance
Web Service and Reuse
Scaling Web Services
Web Services and Loose Coupling
Treating a Web Service as a Black Box
Web Service Interoperability
Web Service Description Language
Governing Web Services
Chapter Summary
Key Terms
Chapter Review

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Chapter 12 Managing the Cloud
Know Your Service-Level Agreement
Ensure and Audit System Backups
Know Your System’s Data Flow
Beware of Vendor Lock-In
Source-Code Escrow
Determine Technical Support and Help Desk Procedures
Determine Training Procedures
Know the Provider’s Security Policies and Procedures
Define the Data Privacy Requirements
Know Specifics About the Economics of the Cloud and Return on Investment
Monitor Capacity Planning and Scaling Capabilities
Monitor Audit-Log Use
Solution Testing and Validation
Chapter Summary
Key Terms
Chapter Review
Chapter 13 Migrating to the Cloud
Define the System Goals and Requirements
Protect Your Existing Data
Use an Experienced Cloud Consultant
Know Your Application’s Current Characteristics
Remember Vendor Lock-In
Define Your Training Requirements
Establish a Realistic Deployment Schedule

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Review the Budget Factors
Identify IT Governance Issues
Understanding Cloud Bursting
Chapter Summary
Key Terms
Chapter Review
Chapter 14 Mobile Cloud Computing
The Evolution of Mobile Computing
Understanding the G in 3G and 4G
The Mobile Cloud Ecosystem
Introducing the Mobile Players
Pages, Apps, and Widgets
Revisiting the Role of HTML
Mobile Development Considerations
Chapter Summary
Key Terms
Chapter Review
Chapter 15 Governing the Cloud
Understanding Corporate Governance
Understanding Business Strategy
Measure What Is Important
Inspect What You Expect
Understanding Internal Controls
Extending Governance to Information Technology
Cloud Computing Governance

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Chapter Summary
Key Terms
Chapter Review
Chapter 16 Evaluating the Cloud’s Business Impact and Economics
Business Economics
Total Cost of Ownership
Economies of Scale
Capital Expenditures
Operational Expenses
Return on Investment
Profit Margins
Moore’s Law and the Cloud
Understanding Right-Sizing
Defining a Large Data Center
Other Economic Key Performance Indicators
Marketing the Cloud
Chapter Summary
Key Terms
Chapter Review
Chapter 17 Designing Cloud-Based Solutions
Revisit the System Requirements
When to Select a Development Environment
Design Is a Give-and-Take Process
Designing for Accessibility
Designing for Audit

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Designing for Availability
Designing for Backup
Designing for Existing and Future Capacity
Designing for Configuration Management
Designing for Deployment
Designing for Disaster Recovery
Designing for the Environment (Green Computing)
Designing for Interoperability
Designing for Maintainability
Designing for Performance
Designing for Price
Designing for Privacy
Designing for Portability
Designing for Recovery
Designing for Reliability
Designing for Response Time
Designing for Robustness
Designing for Security
Designing for Testability
Designing for Usability
Chapter Summary
Key Terms
Chapter Review
Chapter 18 Coding Cloud-Based Applications
Creating a Mashup Using Yahoo! Pipes

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Creating a Simple Yahoo! Pipe
Using Google App Engine
Creating a Hello, World! Application with Google App Engine
Downloading the Google App Engine Software Development Kit
Deploying a Simple Google App Engine Example
Creating a More Advanced Google App Engine Application
Creating a Windows Azure “Hello, World!” Application
Chapter Summary
Key Terms
Chapter Review
Chapter 19 Application Scalability
Reviewing the Load-Balancing Process
Designing for Scalability
Scaling Up, Scaling Out, or Both
Minimize Objects on Key Pages
Selecting Measurement Points
Analyze Your Database Operations
Evaluate Your System’s Data Logging Requirements
Revisit Your Service-Level Agreement
Capacity Planning Versus Scalability
Scalability and Diminishing Returns
Performance Tuning
Complication Is the Enemy of Scalability
Chapter Summary
Key Terms

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Chapter Review
Chapter 20 The Future of the Cloud
How the Cloud Will Change Operating Systems
Location-Aware Applications
Intelligent Fabrics, Paints, and More
The Future of Cloud TV
Future of Cloud-Based Smart Devices
Cloud and Mobile
How HTML5 Will Drive Mobile Applications
Faster Time to Market for Software Applications
Home-Based Cloud Computing
Chapter Summary
Key Terms
Chapter Review
Glossary of Key Terms
Index
Credits

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Preface
FOR YEARS, SOFTWARE DEVELOPERS and network administrators have used
the image of a cloud to represent the myriad of communication details that occur
as messages flow across the Internet from one computer network to another.
This cloud abstraction has now exploded to include processors, both physical
and virtual, data storage, software-as-a-service solutions, and mobile
applications. Today, cloud-based applications and new capabilities are emerging
daily and bringing with them lower cost of entry, pay-for-use processor and
data-storage models, greater scalability, improved performance, ease of
redundancy, and improved business continuity. With these advantages come
increased security challenges and IT-governance concerns. This book examines
these issues. As you will learn, two things are certain: The dynamic nature of the
cloud will continue and we have only just begun to scratch the cloud’s surface.
Chapter 1: Introducing Cloud Computing introduces the abstract nature of
cloud computing and the factors that led to its evolution. The chapter examines
software as a service (SaaS), platform as a service (PaaS), and infrastructure as a
service (IaaS) and includes real-world examples of each. The chapter discusses
the key advantages of cloud computing, including scalability, redundancy, low
cost of entry, and virtualization.
Chapter 2: Software as a Service (SaaS) examines browser-based SaaS
solutions and their advantages. The chapter features real-world solutions such as
SalesForce.com for customer relationship management, Taleo for human
resources solutions, ADT for SaaS-based payroll processing, and many others.
Chapter 3: Platform as a Service (PaaS) introduces cloud-based hardware and
software platforms which allow companies, large and small, to move their
applications to the cloud quickly and cost effectively. The chapter examines PaaS
providers such as Amazon, Google, and Microsoft.
Chapter 4: Infrastructure as a Service (IaaS) introduces the concept of a
cloud-based data center which reduces or eliminates a company’s need for a
large in-house data center. Because of the IaaS provider’s economies of scale, it
can reduce a company’s cost of IT operations significantly.
Chapter 5: Identity as a Service (IDaaS) examines cloud-based
identity-management solutions that simplify user provisioning and resource

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http://salesforce.com/

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access. With more solutions distributed across the cloud, IDaaS facilitates the
user’s sign-on process across solution providers.
Chapter 6: Data Storage in the Cloud examines the integration of cloud-based
data storage and the evolution of network-based storage, which led to its
creation. The chapter presents several cloud-based data storage solutions that
can be enabled at little or no cost. The chapter also examines several low-cost
turnkey based backup solutions.
Chapter 7: Collaboration in the Cloud looks at cloud-based technologies that
allow two or more users to work together to accomplish a task. The chapter
describes the evolution of collaboration technologies from instant messaging to
virtual meetings to shared documents that support simultaneous editing by
multiple users.
Chapter 8: Virtualization introduces hardware and software used to create the
perception that one or more entities exist, when they may not actually be
physically present. The chapter examines solutions for virtual servers, virtual
desktops, and virtual networks.
Chapter 9: Securing the Cloud examines the real-world security issues that
people (even some sophisticated IT users) are uncomfortable with when placing
their personal data, or their company’s data, in the cloud. The chapter examines
specific security threats and the measures that should be taken to minimize
them.
Chapter 10: Disaster Recovery and Business Continuity and the Cloud
discusses ways that the cloud and its redundant resources improve a company’s
ability to recover and continue to operate after a disaster or serious event. The
chapter examines common threats to business operations and some
cloud-computing solutions that can mitigate them.
Chapter 11: Service-Oriented Architecture looks at how the availability of
web-based services is changing how developers create programs and the speed
at which they can deploy solutions. The chapter examines a variety of real-world
web services that are available to programmers for integration into programs.
Chapter 12: Managing the Cloud examines the tasks a manager must perform
after a company migrates its applications to the cloud, including auditing logs,

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monitoring system performance, and identifying bottlenecks within the data
flow.
Chapter 13: Migrating to the Cloud discusses managerial considerations to be
evaluated before migrating to the cloud, such as avoiding vendor lock-in,
identifying remote data backup operations and security considerations,
preparing a budget, and integrating developer and user training.
Chapter 14: Mobile Cloud Computing evaluates whether mobile computing is
driving the growth of cloud computing or vice versa. The chapter examines the
“ecosystem” that is mobile computing as well as how HTML5 will change
computing models.
Chapter 15: Governing the Cloud discusses the role of IT governance and its
extensions for cloud-based computing. The chapter examines the need for and
ways to implement cloud-based internal controls.
Chapter 16: Evaluating the Cloud’s Business Impact and Economics
examines how the cloud’s economy of scale and pay-for-use model will
accelerate the ability for companies, large and small, to release cloud-based
solutions. The chapter also evaluates the cloud’s impact on operational and
capital expenses.
Chapter 17: Designing Cloud-Based Solutions discusses the fact that
developers will simply pick up and move many existing applications to the cloud.
In the future, however, developers should design cloud-based solutions to utilize
scalability and redundancy. The chapter examines many common design
considerations and ways the cloud will impact them.
Chapter 18: Coding Cloud-Based Applications looks at two PaaS providers,
Google Apps and Windows Azure, and implements cloud-based applications with
each. Developers will learn that creating and deploying cloud-based applications
is fast, easy, and inexpensive.
Chapter 19: Application Scalability examines how developers can scale
applications—vertically, by using faster processors or more powerful servers
and horizontally, by supporting the ability to distribute processing better. The
chapter looks at design considerations to be evaluated when designing
applications for scalability.

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Chapter 20: The Future of the Cloud examines ways the cloud will extend its
reach into cars, televisions, appliances, and even our clothes. By the end of the
chapter, readers will realize that we have just scratched the cloud’s surface.

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chapter 1
Introducing Cloud Computing
FOR YEARS DEVELOPERS AND network administrators have represented the
Internet within design documents as a cloud. By abstracting the Internet’s
technologies and underlying protocols as simply a cloud, as shown in FIGURE 1-1,
the developers could temporarily ignore the communication complexity and
simply assume that messages would flow successfully from one
Internet-connected network to another.
Learning Objectives
This chapter introduces cloud computing. By the time you finish this chapter, you
will be able to do the following:
• Understand the abstract nature of cloud computing.
• Describe evolutionary factors of computing that led to the cloud.
• Describe virtualization at both the desktop and the server level.
• Describe and identify common cloud types, which include software as a
service, platform as a service, and infrastructure as a service.
• Know how businesses and individuals use the cloud.
• Describe the benefits and disadvantages of cloud computing.
• Understand common security considerations with respect to the cloud.
• Describe ways cloud computing can improve system fault tolerance.
• Describe Web 2.0 and its relationship to cloud computing.
Today the term cloud computing describes the abstraction of web-based
computers, resources, and services that system developers can utilize to
implement complex web-based systems. Often these cloud-based resources are
viewed as virtual, meaning that if a system or solution needs more resources,
such as processors or disk space, the resources can simply be added on demand
and usually transparently to the application that uses them. Through their virtual
nature, cloud-based solutions can be scaled up or down in size, and the

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companies whose solutions reside in the clouds normally pay only for the
resources they consume. Thus, companies that once relied on expensive data
centers to house their processing resources can now shift their costs and
maintenance efforts to pay-as-you-go, scalable, cloud-based alternatives.

FIGURE 1-1 For years developers and network administrators have represented
the Internet as a cloud.
CASE 1-1 THE APPLE ICLOUD
Whether one is a PC user or a Mac evangelist, one must recognize Apple’s ability
to introduce technology that changes industries and the way people work and
communicate. Apple’s first entrée into the cloud was the iTunes virtual music
store. Today iTunes offers millions of songs for download to PCs and Macs, as
well as iPods, iPhones, iPads, and other handheld devices. More than just music
on a web-based storage device, iTunes laid a foundation for scalable e-commerce,
high-bandwidth download transactions, and user device independence.
Apple’s iCloud extends the company’s existing functionality by providing users
with a cloud-based storage facility for their phones, music, videos, books, and
other documents. Using iCloud as a centralized virtual storage facility, users can
quickly exchange digital content among their various devices. In fact, users can
customize the iCloud settings to make the file exchange seamless and automatic.
In other words, if a user stores a digital file within iCloud, behind the scenes
iCloud software will push the content to each of the user’s registered devices, as
shown in FIGURE 1-2.

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FIGURE 1-2 Using iCloud, users can synchronize their content to a variety of
devices.
Exercise What industries might iCloud disrupt? What business services do you
anticipate Apple to offer in order to drive revenue through the iCloud?
Web Resources For more information on iCloud, see
www.CloudBookContent.com/Chapter01/index.html.
Web 2.0 and the Cloud
For years, when companies wanted to place content on the web, they hired web
developers, who created the underlying HTML documents. Through this process,
the number of documents on the web exploded to billions worldwide. Web 2.0 is
a term used to describe the set of tools and websites that allow users to publish
content to the web without the direct use of HTML. Behind the scenes, the tools
and sites build the HTML documents for the user and then upload the documents
to a web server. TABLE 1-1 describes the common Web 2.0 applications.
TABLE 1-1 COMMON WEB 2.0 SITES AND APPLICATIONS
Application/Site Purpose

Blog A web log that users can write and use to publish content directly to the web.

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Wiki A software program that allows users to collaborate on shared web-based
documents.

Twitter A microblogging service that allows users to send messages of up to 140
characters to those who follow the users’ tweets.

Facebook A social networking site to which users can post text, photos, and
video-based content.

YouTube A site to which users can upload video content for sharing with others.

FIGURE 1-3 Web 2.0 tools make it easy for users who do not possess web
development skills to easily publish content on the web.
As shown in FIGURE 1-3, with Web 2.0 tools and sites, users essentially publish
content directly to the cloud for access by other users.
Distinguishing Cloud Types
Cloud-based applications provide a wide range of solutions to a very large
number of users. To help us analyze and describe cloud-based systems, many
people refer to a cloud solution in terms of its deployment model and services
model. These two terms originated within a cloud computing document from the
National Institute of Standards and Technology (NIST), as shown in FIGURE 1-4.

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FIGURE 1-4 Users refer to cloud solutions based on the system’s deployment and
services models.
CASE 1-2 THE MICROSOFT WINDOWS AZURE PLATFORM
When web developers create web pages, they need to host the corresponding
HTML files on a web server before other users can access the content from across
the web. Developers have two choices when it comes to publishing their content.
First, they can host the pages on their own web server, which may require
hardware support and maintenance. Second, the developers can host the files at
a server that resides at an Internet service provider (ISP), which allows the
developer to focus on web page development as opposed to server management.
Today developers can host their web pages at an ISP for a few dollars per month.
Windows Azure is a Microsoft platform that developers can use to move their
applications to the cloud. Unlike support for a simple HTML page, which requires
only the presence of a web server, Windows Azure provides operating-system
support for .NET applications and a cloud-based SQL server (SQL Azure). You can
think of Windows Azure as a cloud-based data center within which developers
can house their applications. The Windows Azure platform, in turn, maintains
servers, operating systems, database software, and other supporting
applications. As a developer’s application grows in terms of users, processor
demands, or disk storage, the Windows Azure environment grows to meet the
developer’s needs. In this way, the Windows Azure platform provides the
following:
• Scalability: Windows Azure can scale up, or scale down, processor and storage
resources on demand.
• Redundancy: Windows Azure provides server, disk storage, and network
redundancy.
• Cost benefits from resource pooling: Windows Azure shares IT resources
across a very large number of companies, which provides cost savings to each.
• Outsourced server management: Microsoft provides Windows Azure IT staff
who maintain operating systems and underlying support software.
• Low cost of entry: To release a cloud-based solution, companies do not need
to invest in their own IT data center.
Exercise Discuss the pros and cons of hosting an application within one’s own
data center as opposed to using a service provider such as Windows Azure.

Web Resources For more information on Windows Azure, see
www.CloudBookContent.com/Chapter01/index.html.
Cloud Deployment Models
A cloud deployment model specifies how resources within the cloud are shared.
As discussed in TABLE 1-2, there are four primary cloud deployment models:
private cloud, public cloud, community cloud, and hybrid cloud. Each model
influences the corresponding scalability, reliability, security, and cost.
TABLE 1-2 CLOUD DEPLOYMENT MODELS
Deployment
Model
Characteristics

Private cloud Owned by a specific entity and normally used only by that entity or one of its
customers. The underlying technology may reside on- or off-site. A private
cloud offers increased security at a greater cost.

Public cloud Available for use by the general public. May be owned by a large organization
or company offering cloud services. Because of its openness, the cloud may be
less secure. A public cloud is usually the least expensive solution.

Community
cloud
The cloud is shared by two or more organizations, typically with shared
concerns (such as schools within a university).

Hybrid cloud A cloud that consists of two or more private, public, or community clouds.

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Cloud Service Models
A cloud can interact with a client (user or application) in a variety of ways,
through capabilities called services. Across the web, three major types, or
models, of services have emerged, which are defined in TABLE 1-3.
Examining Software as a Service (SaaS)
The software as a service (SaaS) model provides a cloud-based foundation for
software on demand. In general, an SaaS solution is web-delivered content that
users access via a web browser. The software can reside within any of the
deployment-model clouds. FIGURE 1-5 illustrates the SaaS model.
TABLE 1-3 COMMON CLOUD SERVICE MODELS
Cloud Service
Model
Characteristics

Software as a
service (SaaS)
A complete software application with a user interface.

Platform as a
service (PaaS)
A platform within which developers can deploy their applications. A
PaaS solution includes hardware (servers and disks), operating systems,
development tools, and administrative tools.

Infrastructure as a
service (IaaS)
Provides machines, storage, and network resources that developers can
manage by installing their own operating system, applications, and
support resources.

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FIGURE 1-5 The SaaS model presents a cloud-based application with a user
interface to users running only a web browser.
The advantages of SaaS solutions are simplicity of integration (users need only a
browser), cost (the data center resides within the cloud), and scalability
(customers can add user licenses or seats as needed). The disadvantage of SaaS
solutions is the perception of security issues. Users who are new to the cloud
may not feel comfortable storing company data in a remote data-storage facility
(the cloud).
Well-known SaaS solution providers include Salesforce.com, Google Apps,
TurboTax, and QuickBooks.
Examining Platform as a Service (PaaS)
The platform as a service (PaaS) model provides the underlying hardware
technology, such as one or more servers (or virtual servers), operating systems,
database solutions, developer tools, and network support, for developers to
deploy their own solutions. The hardware and software within a PaaS solution is
managed by the platform provider. Developers need not worry about performing
hardware or operating system upgrades. Instead, developers can focus on their
own applications. FIGURE 1-6 illustrates the PaaS model. Well-known PaaS
solution providers include Windows Azure and Google App Engine.
Examining Infrastructure as a Service (Iaas)
The infrastructure as a service (Iaas) model provides a virtual data center
within the cloud. IaaS provides servers (physical and virtualized), cloud-based
data storage, and more. Within an IaaS solution, developers must install their

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own operating system, database management software, and support software.
Then the developers (or the company’s system administrators) must manage
both the hardware and the software. FIGURE 1-7 illustrates the IaaS model. The
Amazon Elastic Compute Cloud (Amazon EC2) is an IaaS solution.

FIGURE 1-6 The PaaS model provides the underlying hardware and operating
system a developer needs to launch an application.

FIGURE 1-7 The IaaS model provides the underlying hardware (servers and
storage). Clients must install and then manage their own operating system,
database software, and support software.
CASE 1-3 AMAZON WEB SERVICES (AWS)
If you ask people to rank order the top e-commerce companies, Amazon.com will
make the top of most lists. Amazon has grown from selling books to selling a
virtually endless range of products.

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As Amazon evolved its sales plan, the company recognized the value of extending
its product base (the things they sell) to other sites. The other sites (Amazon
affiliates), in turn, could offer links to products, the sales and fulfillment of which
would be handled by Amazon, in a revenue-sharing model. This affiliate program
was one of the first cloud-based sales partnerships.
As Amazon continued to grow, its internal developers created a system
architecture that was redundant, scalable, and robust. With these services fully
operational, Amazon recognized that most software companies would need
similar capabilities. To meet that demand, Amazon released Amazon Web
Services (AWS), which companies can use to host their own systems. Today,
AWS process hundreds of thousands of web-based requests for companies every
second!
One of Amazon’s primary cloud tools is the Amazon Elastic Compute Cloud
(Amazon EC2), which lets companies rent cloud-based services for their
applications. Using Amazon EC2, companies can pay by the hour for the
processing they need and scale processor support up or down to meet user
demands.
To complement the processing power of Amazon EC2, Amazon Simple Storage
Service (Amazon S3) provides cloud-based data-storage facilities, and companies
pay only for the data storage they consume. Behind the scenes, Amazon provides
data redundancy.
To further support developers, Amazon offers virtual-network support, database
support, and e-commerce capabilities.
Exercise Assume your company wants to use Amazon as its disk-backup
provider. What pros and cons would you consider? Discuss how you might
leverage Amazon Web Services to bring an e-commerce site online.
Web Resources For more information on Amazon Web Services, see
www.CloudBookContent.com/Chapter01/index.html.
Exploring Uses of the Cloud
The cloud is now host to a wide range of large-scale and small-scale (custom)
applications. The number and type of applications that users can deploy to the
cloud is virtually limitless. Many software companies are now moving key
applications from expensive internal data centers to cost-effective and
resource-redundant cloud solutions.

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As a user, you might already use cloud-based personal productivity software,
such as TurboTax, bank-specific bill-pay software, or a stock tool such as
E*TRADE. Or you may leverage a cloud-based collaboration tool, such as Google
Calendar or Google Docs, to share information and documents with other users.
Or you may store files, such as your music, photos, or videos, on cloud-based data
storage.
CASE 1-4 SALESFORCE.COM
One of the first companies to launch a large-scale SaaS solution was
Salesforce.com. The company recognized that as much as three-fourths of a
salesperson’s day was spent on nonsales tasks (calendar management, contract
management, presentation management, and contact management).
Salesforce.com recognized that regardless of the items a company sold, the
selling process was similar across companies and even industries. Salesforce.com
automated these tasks and put the underlying data storage in the cloud—the
sales cloud.
In a similar way, Salesforce.com has recognized that after the sale, customer
service is key. As a result, the company released a customer service cloud, which
integrates common customer service operations. The software manages the
process of responding to customer calls, e-mails, Facebook updates, live chats,
and more. After customer cases are resolved, managers can monitor the results
via cloud-based dashboards.
Exercise Discuss the common sales and customer service tasks supported by
Salesforce.com.
Web Resources For more information on Salesforce.com, see
www.CloudBookContent.com/Chapter01/index.html.
Introducing Scalability
When they launch a new website, many developers have visions of having
created the next Google, Amazon, or Facebook. Unfortunately, the developers
have no way of knowing what the actual user demand will be. Should the site
become widely used, it may require additional servers or disk-storage capacity.
Scalability defines a site or application’s ability to use additional resources on
demand. The site or application may scale up to utilize additional resources
when the system is experiencing high user demand and may later scale down its
resource usage when the user demand declines.

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Applications that run within the cloud are normally highly scalable. An
application administrator can manually add or remove resources, or the
application can be configured to scale automatically. As shown in FIGURE 1-8,
applications scale through the use of additional servers (physical or virtual) or
through the addition of disk-storage space.
Introducing Virtualization
Chapter 8, Virtualization, examines desktop and server virtualization in detail.
For now think of virtualization as the use of hardware and/or software to
create the perception of something. For example, most servers have a CPU that is
capable of running a specific operating system, such as Windows or Linux. Using
special software, the server can be made to appear as if it has multiple CPUs
running the same or different operating systems, as shown in FIGURE 1-9.

FIGURE 1-8 Sites or applications can scale up or down through the addition or
removal of servers or disk-storage capacity.

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FIGURE 1-9 Server virtualization makes a single server appear as multiple
independent servers running the same or different operating systems.
Behind the scenes, the server CPU switches its processing power rapidly among
the various operating systems.
In a similar way, most desktop PCs typically run one operating system. Again,
using special virtualization software, a desktop PC, as shown in FIGURE 1-10, can
be made to appear as if the system is simultaneously running different operating
systems. Desktop virtualization provides an excellent solution for developers,
application testers, and help desk support personnel who must support multiple
operating systems. Rather than having multiple desktop systems on their desk,
with each system running a specific operating system, the user can instead use a
single desktop PC with multiple (virtual) operating systems.

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FIGURE 1-10 Desktop virtualization allows a PC to run multiple operating
systems simultaneously.
CASE 1-3 GOOGLE CLOUD-BASED SOLUTIONS
Google is one of the world’s most successful web-based businesses. Through its
high-performing search engine, Google leverages high-margin automated
advertising solutions. Beyond this, Google offers a variety of applications that
leverage the cloud’s ease of access and device independence to a wide range of
users.
To start, Gmail, an early cloud-based solution, has become one of the most widely
used e-mail services. By storing user e-mails within the cloud, Gmail provides
ease of access to e-mail from any computer or handheld device, at any time and
from any place.
Google Docs, an online set of collaborative document editing tools, provides
many of the common capabilities of Microsoft Office tools, such as Word, Excel,
and PowerPoint, from within a web browser, with no software to install and no
cost! Not only do the Google Docs tools make it easy for developers to share
documents, they provide a preview of how future cloud-based solutions will
allow users to perform their daily computing tasks without the need for a
computer operating system such as Windows or Mac OS.
As you might expect, Google is not conceding sole custody of the music market to
Apple. Google is protective of its web domain and now offers services users can
access for common cloud-based solutions.
Exercise Explain how Google makes money. Describe the pros and cons of PCs
that do not require an operating system.
Web Resources For more information on Google cloud-based solutions, see
www.CloudBookContent.com/Chapter01/index.html.
Collecting Processing Power Through Grid Computing
Through cloud computing, users leverage virtual processing power and data
storage via Internet-based computing resources that reside in the cloud. Through
CPU (or server) farms and load balancing, cloud-based applications can scale on
the fly to meet user demands.
Before the advent of the cloud, developers sought ways to leverage the potential
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based on the fact that throughout the day most PCs have spiked use. This means
that when a user is active, the CPU utilization may grow to 30 to 50 percent of the
processor’s capacity. When the user is not active, the CPU is idle, often using 1
percent or less of its processing capabilities.
By utilizing the fact that most computers are connected to a network, the
grid-computing architects look to design applications that could hand off work
across the network to idle CPUs. When the CPU completes its task, it simply
returns its result. Shown in FIGURE 1-11, a grid-computing application is well
suited for scientific and complex mathematical processing.

FIGURE 1-11 Grid computing breaks a complex task into smaller pieces that are
distributed to CPUs that reside within the network (grid).
As you might anticipate, grid computing introduces a wide range of security
issues. The applications that move across the grid must bring with them code to
execute, data, and other state information. The University of California, Berkeley,
is one of the leaders in grid computing. To facilitate computer interaction across
grids, the university developed the Berkeley Open Infrastructure for Network
Computing (BOINC). For specifics, visit http://boinc.berkeley.edu.
A FEW GOOD CLOUD-CONTENT READS
Across the web—OK, make that across the cloud—there are many sites that
provide great information about cloud issues. The following sections describe
several items you should

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DISTRIBUTED MANAGEMENT TASK FORCE INC. (DMTF) CLOUD
MANAGEMENT
Distributed Management Task Force Inc. (DMTF) provides information
technology standards, which exist to simplify computer system management and
reduce related costs. Within DMTF, the Cloud Management Work Group (CMWG)
and the Cloud Auditing Data Federation (CADF) provide standards for cloud
architecture, environments, and interactions. You should take time, for example,
to visit the Cloud Standards Wiki, shown in FIGURE 1-12.

FIGURE 1-12 The Cloud Standards Wiki.
STORAGE NETWORKING INDUSTRY ASSOCIATION (SNIA)
One of the largest uses of the cloud is for remote data storage, perhaps for live
data, music, video, or even backups. The Storage Networking Industry
Association (SNIA) is a nonprofit organization that provides standards and
solutions on matters related to disk storage. As you might expect, SNIA provides
content on cloud-based data storage. At the SNIA website, you can find

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overviews, podcasts, and standards on cloud-based storage issues. For specifics,
visit the SNIA cloud site at www.snia.org/cloud.
OBJECT MANAGEMENT GROUP
The Object Management Group (OMG) is a nonprofit organization that provides
standards for a wide range of technology, including real-time and embedded
software, analysis and design, middleware, and more. Within the OMG, the Cloud
Standards Customer Council (CSCC) is currently working on a variety of cloud
computing initiatives, which will be consolidated into a user guide. For specifics
on their research and publications, visit the CSCC website.
CHAPTER SUMMARY
The concept of a cloud and the Internet is not new. For years developers and
network administrators have represented the Internet as a cloud. Using the cloud
abstraction, developers could temporarily ignore the underlying communication
complexity and simply assume that messages would flow successfully from one
Internet-connected network to another.
Cloud computing is an abstraction of web-based computers, resources, and
services that system developers can utilize to implement complex web-based
systems. Developers often view cloud-based resources as virtual. This means that
if a system or solution need more resources, such as servers or disk space, the
resources can simply be added on demand and usually transparently to the
cloud-based application. Cloud-based solutions can normally scale up or down in
size based on user demands. Companies whose solutions reside in the cloud
normally pay only for the resources they consume. As a result, companies that
once relied on expensive data centers to house their processing resources can
now shift their costs and maintenance efforts to pay-as-you-go, scalable,
cloud-based alternatives.
KEY TERMS
Amazon Web Services (AWS)
Cloud computing
Community cloud
Grid computing
Hybrid cloud

http://www.snia.org/cloud

iCloud
Infrastructure as a service (IaaS)
Platform as a service (PaaS)
Private cloud
Public cloud
Reliability
Robust
Scalability
Software as a service (SaaS)
Virtualization
Web 2.0
Windows Azure
CHAPTER REVIEW
1. Define and discuss cloud computing.
2. Discuss how cloud computing has changed how companies budget for
software solutions.
3. Compare and contrast SaaS, PaaS, and IaaS, and provide an example of each.
4. Define scalability and discuss how the cloud impacts it.
5. List three advantages and three disadvantages of cloud computing.
6. Define virtualization and discuss how the cloud impacts it.
7. Describe three cloud-based solutions for individuals and three cloud-based
solutions for businesses.
8. Discuss how Web 2.0 has driven the growth of the web.
9. Compare and contrast public, private, community, and hybrid clouds.

chapter 2
Software as a Service (SaaS)
SOFTWARE AS A SERVICE (SaaS) is a solution model in which users use a web
browser to access software that resides, along with the programs and user data,
in the cloud. Companies that use SaaS solutions eliminate the need for in-house
(data-center-based) applications, administrative support for the applications,
and data storage. Because SaaS solutions reside within the cloud, the solutions
can easily scale to meet customer needs. Further, most companies can pay for the
SaaS solutions on demand—meaning that the companies pay only for the
resources they consume, normally on a per-user basis. SaaS solutions exist for a
wide range of applications and provide customers with a cost-effective way to
get started and an affordable long-term solution.
Learning Objectives
This chapter examines SaaS solutions in detail. By the time you finish this
chapter, you will be able to do the following:
• Define and describe SaaS.
• List the advantages and disadvantages of SaaS solutions.
• Define and describe OpenSaaS.
• Define and describe mashups.
• Discuss the wide range of SaaS solutions and their providers.
Getting Started with SaaS
SaaS solutions offer the following advantages:
• They reduce or eliminate the need for an on-site data center
• They eliminate the need for application administration
• They allow customers to pay on demand for software use, normally on a
per-user basis
• They offer application, processor, and data storage scalability

• They offer device-independent access to key applications
• They increase disaster recovery and business continuity
The biggest concern, or potential disadvantage, is that the data, like the
applications, reside in the cloud. Many companies are concerned about letting go
of their data. Also, because the company does not own the solution, it can be
challenging or expensive to customize the application.
CASE 2-1 SALESFORCE.COM SAAS FOR CUSTOMER RELATIONSHIP
MANAGEMENT (CRM)
Salesforce.com was one of the first companies to unlock the power of
cloud-based SaaS. The site delivers cloud-based customer relationship
management (CRM) solutions, which let companies accomplish the following:
• Manage sales contacts and leads
• Centralize contact information, presentations, and project details
• Access sales information and reports from anyplace, at any time, with any
device
• Manage project quotes and project work flow
• Sync sales contacts and meetings with existing tools, such as Microsoft Outlook
Salesforce.com offers a variety of solutions that support not only the small
business, but also the large enterprise.
Exercise Salesforce.com was one of the companies to leverage the power of the
cloud. Discuss the features Salesforce.com provides that are well suited for
companies large and small.
Web Resource For more information on Salesforce.com, see
www.CloudBookContent.com/Chapter02/index.html.
Understanding the Multitenant Nature of SaaS Solutions
SaaS applications are often multitenant solutions; that is, within the cloud, two
or more companies may share the same server resources, as shown in FIGURE
2-1. Depending on their size and fees, customers may also share database
resources. Further, depending on the SaaS provider, customizing a multitenant
solution may be difficult, expensive, or impossible.

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FIGURE 2-1 Many SaaS solutions are multitenant, which means that behind the
scenes customers may share computing resources.
CASE 2-2 TALEO SAAS FOR HUMAN RESOURCES MANAGEMENT
To achieve wide-scale use, an SaaS solution must have large market potential.
Every business must recruit, hire, train, and compensate employees. The Taleo
cloud-based talent management system provides applications and services to
meet company human resources demands. Specifically, Taleo SaaS solutions
provide the following:
• Recruitment tools companies can use to attract, hire, and integrate talented
individuals into the company culture
• Performance-management tools companies can use to evaluate employees and
plan their growth and eventual replacement
• Compensation tools appropriate for companies with a global workforce
• Workforce training and professional development tools companies can use to
educate and train employees
Exercise For an SaaS solution to be successful, the solution must be disruptive.
Discuss whether or not you consider the Taleo cloud-based solutions disruptive.
Web Resource For more information on Taleo cloud-based human resources
solutions, see www.CloudBookContent.com/Chapter02/index.html.

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Understanding OpenSaaS Solutions
The application programs that run as SaaS solutions in the cloud were developed
using a specific programming language and were designed to run on a specific
operating system using a specific database management system. An OpenSaaS
solution is an SaaS application created using an open source programming
language and designed to run on an open source operating system and database.
Many customers believe that if a solution is open source, it will be easier for them
to move the data to a different application in the future if the current solution
fails to meet their needs. Because customers do not own the SaaS software, they
will not be able to move the application itself.
Customers that are concerned about moving their data in the future should
consider an OpenSaaS provider. That said, most SaaS solutions, open source or
not, provide a way for customers to export their data if the need arises.
CASE 2-3 ADP SAAS FOR PAYROLL PROCESSING AND HUMAN RESOURCES
MANAGEMENT
One of the first companies to leverage the power of the cloud was ADP—a
payroll processing company. Reaching far beyond payroll today, ADP offers
cloud-based solutions for time management, employee benefits processing,
workers compensation, human resources issues, and more. Further, ADP has
extended many of its services to mobile users, allowing payroll processing to
occur any time, from any place.
Exercise Discuss the market potential for ADP products beyond payroll
processing.
Web Resource For more information on ADP cloud solutions, see
www.CloudBookContent.com/Chapter02/index.html.

CASE 2-4 WEBEX SAAS FOR VIRTUAL MEETINGS
To gain market share, an SaaS solution must be disruptive; it must change its
industry. The WebEx solution not only changes how and when people meet, it
disrupts the travel industry by reducing business trips, hotel stays, and business
meals. Millions of users rely on WebEx to provide a virtual yet face-to-face
meeting platform. A side effect of less travel is the greening of business, which
means it has less impact on the environment. In fact, as shown in FIGURE 2-2,

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WebEx provides an online calculator that shows the dollars saved and the carbon
footprint reduced through WebEx-based meetings, as opposed to corporate
travel.
Beyond holding online meetings, companies use WebEx for the following:
• Training webinars for hundreds or thousands of attendees, within the
company and beyond
• Press conferences
• Product sales demonstrations
• Remote technical support
• And more
FIGURE 2-3 shows a WebEx presentation on cloud computing.
Exercise Assume that your company must invite 500 employees into the
corporate office from states across the country (an average airline ticket cost of
$350). Using the WebEx calculator, determine the potential company savings by
hosting the meeting online.
Web Resource For more information on WebEx, see
www.CloudBookContent.com/Chapter02/index.html.

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http://www.cloudbookcontent.com/Chapter02/index.html

FIGURE 2-2 Calculation of cost savings and carbon footprint reduction resulting
from WebEx meetings. Courtesy of Cisco Systems, Inc. Unauthorized use not
permitted. www.webex.com/overview/environment.html. (6/1/11).

FIGURE 2-3 WebEx leverages the cloud for face-to-face virtual meetings and
presentations. Courtesy of Cisco Systems, Inc. Unauthorized use not permitted.
http://theheadoftheclass.webex.com. (6/1/11).

CASE 2-5 CARBONITE SAAS FOR FILE BACKUPS
Businesses often rely on a process known as cloud-based colocation to duplicate
their company resources at a remote site. If fire, theft, or some other disaster
occurs, the business significantly reduces its risk of data loss.
Most user-based computer books tell users that they, too, should perform regular
disk and file backup operations. However, because the process is generally too
time consuming, most users fail to back up their files on a regular basis. Worse
yet, users who do perform backups often store the copies within the same facility
(home or office) as their computer. The backups are at risk to many of the same
factors that threaten the original data.

http://www.webex.com/overview/environment.html

http://theheadoftheclass.webex.com/

To provide users and companies with a backup solution, many SaaS providers
have emerged to back up user data files to redundant storage facilities that
reside within the cloud, as shown in FIGURE 2-4.
The SaaS cloud-based backup systems provide reliable and secure storage. Users
simply select the files or folders they want to back up and then schedule when
and how often they want the backups to occur. The actual backup operations
then happen behind the scenes, automatically.
FIGURE 2-5 shows a screen for a Carbonite-based backup operation occurring as
a background process while the user performs other tasks.
Exercise Assume your company has 1,000 employees. Calculate the potential
cost to integrate cloud-based backup operations through Carbonite. Do you have
an alternative backup solution?
Web Resource For more information on Carbonite cloud-based backups, see
www.CloudBookContent.com/Chapter02/index.html.

FIGURE 2-4 Cloud-based SaaS backup providers store secure copies of user and
company files at data storage facilities that reside in the cloud.

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FIGURE 2-5 The Carbonite software running as a background task to back up
files to the cloud.

FIGURE 2-6 A mashup is a collection of services joined to create an overall
solution.
Understanding Mashups

Many companies need a variety of SaaS solutions. Depending on the various
solution providers, the company may create a mashup, a collection of services
joined to create an overall solution. FIGURE 2-6 illustrates the concept of a
solution mashup.
Developers categorize mashups as web-based or server-based. In a web-based
mashup, the user’s browser (perhaps via JavaScript) combines the various
content sources to create a unified display. In server-based mashups, an
application running on a server combines the data.
Not surprisingly, the open philosophy has reached mashups. In fact,
organizations are working on the Enterprise Markup Mashup Language (EMML)
to simplify the design and implementation of mashup solutions while increasing
their portability. For more information, visit www.openmashup.org.
CASE 2-6 ONLINE SCHOOL SAAS SOLUTIONS
Online education has remained one of the fastest growing segments within
education markets. Millions of learners now take courses online. Using
cloud-based learning management systems, universities offer courses in both
synchronous (learners meet at a specific day and time) and asynchronous
(learners make their own schedule) formats. By leveraging cloud-based systems,
schools can reduce their IT resources and staffing costs, essentially paying for
learning services on demand.
Exercise Using the web, search for demographic information on the size of the
online learning environment. Discuss how you expect this market to evolve over
the next 10 years.
Web Resource For more information on cloud-based online learning, see
www.CloudBookContent.com/Chapter02/index.html.

CASE 2-7 MICROSOFT OFFICE 365 SAAS FOR DOCUMENT CREATION, EDITING,
AND SHARING
For as long as most of us can remember, computer users have made extensive
use of the Microsoft Office suite: Word, PowerPoint, Excel, Outlook, and more.
Traditionally users have had to purchase and install Office, a relatively expensive
investment. Then users have had to keep installing updates to the software as
they became available from Microsoft. Businesses, in turn, would normally
license Office for each of their employees.

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http://www.openmashup.org/

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Over the past few years, to reduce costs many users began to use products such
as Open-Office (LibreOffice), an open source, free, Office-compatible solution.
Recently users have found Google Docs, which can be used from any
computer—a compelling tool.
To meet user demands and to match competitor offerings, Microsoft released
Office 365, a pay-by-the-month subscription to the Office applications, which, as
shown in FIGURE 2-7, resides in the cloud.
Using Office 365, users can access and edit their documents from any computer,
as well as many handheld devices. If needed, users can save their documents to
local devices. FIGURE 2.8, for example, shows a PowerPoint document in Office
365.
Further, because the Office 365 documents are cloud based, users and teams can
easily collaborate and share documents.
Exercise Assume your company has 1,000 employees who need access to the
Microsoft Office suite of products. Analyze the potential cost savings of using
Microsoft Office 365 over purchasing seat licenses for each user.
Web Resource For more information on Microsoft Office 365, see
www.CloudBookContent.com/Chapter02/index.html.

FIGURE 2-7 Office 365 provides cloud-based subscription access to the Office
suite of applications.

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FIGURE 2-8 Users can access cloud-based Office 365 documents from any PC as
well as many handheld devices.
Understanding Service-Oriented Architecture (SOA)
Most SaaS solutions provide complete solutions, meaning an application that can
be used within a web browser. For example, Salesforce.com provides a web
application for customer relationship management, TurboTax provides a web
application for filing taxes, and QuickBooks provides a web application for
business accounting. Beyond providing a complete application with a user
interface, many solution providers offer specific services that developers can
access across the web from within programs they create. Developers refer to
these services as web services. A developer might, for example, use web services
to do the following:
• Query the price of a stock
• Check a warehouse for current product inventory levels
• Get real-time road or weather conditions
• Check airline flight departure or arrival information
• Purchase a product or service
• Perform credit card processing

http://salesforce.com/

FIGURE 2-9 Web services are solutions that programs can call across the web to
perform specific tasks.
As shown in FIGURE 2-9, an SaaS application interacts with a user, whereas a web
service interacts with a program.
Service-oriented architecture (SOA) is an application development
methodology with which developers create solutions by integrating one or more
web services. Think of a web service as a function or subroutine a program can
call to accomplish a specific task. As shown in FIGURE 2-10, when a program
running on 91 one computer calls a web service, a message, possibly containing
parameter values, is sent across the network (or Internet) to the computer
housing the web service. That computer, in turn, performs its processing and
normally returns a result to the caller.
Some developers refer to web services as remote-procedure calls. Further,
developers refer to a set of web services as an application program interface
(API). Amazon and eBay, for example, provide APIs that programmers can use to
purchase products from across the web using the programs they create. To gain a
better understanding of the processing that web services can perform, visit the
XMethods website shown in FIGURE 2-11. XMethods provides a variety of web
services that perform a wide range of tasks.

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FIGURE 2-10 To call a web service, a program typically sends a message to the
web service that resides on a remote computer and then waits for the web
service to return a result.

FIGURE 2-11 The XMethods website at www.xmethods.com provides web
services that perform a wide range of tasks.

http://www.xmethods.com/

CASE 2-8 FACEBOOK: AN SAAS MEDIA SITE?
If you ask 10 cloud experts if Facebook is an SaaS social media site, you will
likely get 10 “maybe” answers. Facebook definitely has a variety of SaaS
characteristics:
• Ability to scale with respect to processor demands and data storage needs
• No user software to purchase or install
• Redundant server hardware and data storage
• Accessibility through a myriad of devices
Exercise Justify whether Facebook is an SaaS solution.
Web Resource For more information on Facebook as an SaaS provider, see
www.CloudBookContent.com/Chapter02/index.html.

CASE 2-9 IS GOOGLE+ A BETTER, OR JUST ANOTHER, SOCIAL NETWORK?
Google+ is a new social networking site that lets users define and manage
various groups of people and how they interact with them. With Google+, users
can define various circles, which might include people from work, good friends,
and family, as well as casual acquaintances. Using such circle definitions, users
can better control the posts they allow others to view.
FIGURE 2-12 Shows the Google+ home page.
Exercise Compare and contrast the Google+ features with those of other social
networks, such as Facebook.
Web Resource For more information on Google+, see
www.CloudBookContent.com/Chapter02/index.html.

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FIGURE 2-12 Google+ is a social network that resides in the cloud.
CHAPTER SUMMARY
SaaS provides a solution model that allows users to use a web browser to access
software that resides in the cloud. SaaS solutions allow companies to eliminate or
reduce their need for on-site, data-center-based applications. By eliminating
in-house applications, companies can also reduce administrative support for the
applications, as well as data storage. SaaS solutions reside within the cloud,
which lets the solutions easily scale processors or disk storage to meet customer
needs. Companies normally pay for SaaS solutions on demand for the resources
they consume, usually on a per-user basis. SaaS solutions exist for a wide range
of applications. Using SaaS solutions, customers have a cost-effective way to get
started and an affordable, long-term solution to their data storage needs. Finally,
this chapter examined web services, which are cloud-based services that
developers can call from within the programs they create to accomplish specific
tasks. Many SaaS solution providers offer their services directly to users via SaaS
applications and to developer-created programs using web services.
KEY TERMS
Application program interface (API)
Customer relationship management (CRM)
Mashup

Multitenant solution
Service-oriented architecture (SOA)
Web services
CHAPTER REVIEW
1. Define and describe SaaS.
2. Search the web and list an SaaS provider for each of the following industries:
• Sales and customer relationship management
• Accounting
• Income tax filing
• Web-based meetings
• Human resources
• Payroll processing
• Backup automation
• Office document creation
• Social networking
3. Define and describe mashups.
4. List the advantages and disadvantages of SaaS solutions.
5. Describe the role of OpenSaaS.
6. Compare and contrast a web service and an SaaS solution.
7. Define and describe SOA.

chapter 3
Platform as a Service (PaaS)
PLATFORM AS A SERVICE (Paas) solutions provide a collection of hardware
and software resources that developers can use to build and deploy applications
within the cloud. Depending on their needs, developers may use a
Windows-based PaaS solution or a Linux-based PaaS.
Using PaaS, developers eliminate the need to buy and maintain hardware, as well
as the need to install and manage operating system and database software.
Because the computing resources no longer reside in the data center, but rather
in the cloud, the resources can scale up or down based on application demand,
and the company can pay for only those resources it consumes. Further, because
PaaS eliminates the developers’ need to worry about servers, they can more
quickly deploy their web-based solutions.
Learning Objectives
This chapter examines the PaaS model in detail. By the time you finish this
chapter, you will be able to do the following:
• Define and describe the PaaS model.
• Describe the advantages and disadvantages of PaaS solutions.
• List and describe several real-world PaaS solutions.
• List and describe cloud-based database solutions and describe their
advantages.
• Discuss the development history that led to PaaS.

CASE 3-1 GOOGLE APP ENGINE AS A PAAS
Google App Engine, sometimes called GAE, is a PaaS solution that lets developers
create and host web-based applications that reside and run on services managed
by Google, as shown in FIGURE 3-1.

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Like many Google services and offerings, Google App Engine is a free service
(until applications reach a large size and consume significant bandwidth). Google
estimates that most developers can use Google App Engine free of charge. Once
they have 5 million hits per month the developers must then pay, but only for the
resources they use.
Currently, Google App Engine provides platform support for a variety of
programming languages, the three most common of which are Java, Python, and
Go. The primary Google App Engine features include the following:
• Support for dynamic web pages
• Data storage and query support
• Load balancing for application scalability
• Application program interface (API) support for application-based e-mail
through Google services
• A local development, environment that simulates Google App Engine on the
developer’s computer
• Support for event scheduling and triggering
• An application sandbox that limits access to the underlying operating system
• Software development kits specific to programming languages
• An administrative console for managing applications and databases
For more information on Google App Engine, visit www.appengine.google.com.
Exercise Assume your company must deploy Java and PHP solutions. Discuss
how your company might use Google App Engine and the company’s potential
cost.
Web Resources For additional information on Google App Engine, see
www.CloudBookContent.com/Chapter03/index.html.

http://www.appengine.google.com/

http://www.cloudbookcontent.com/Chapter03/index.html

FIGURE 3-1 Google App Engine helps developers create web-based applications
and then hosts the applications in the cloud.
IT Evolution Leading to the Cloud
The evolution of information technology solutions has been defined by several
distinct hardware and software models. To start, early IT solutions from the
1960s to mid-1980s were characterized by mainframe computers similar to that
shown in FIGURE 3-2, which had the following characteristics:
• Large capital investment for data-center-based computers
• Large, expensive disk and tape storage systems that often provided only
limited storage capacity
• User interface to the system provided through dumb terminals
• Limited computer–network interconnectivity
• System security maintained through physical security (few users had direct
access to the computer hardware)

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FIGURE 3-2 Computing from the 1960s through the mid-1980s was mainframe
driven.
With the advent of the IBM PC in 1981, users shifted to local applications and
data storage. Early network solutions provided in-house e-mail communication
and limited printer and file sharing. System security was implemented primarily
at the individual computer level because network simplicity did not yet provide
an environment for sophisticated computer viruses.

FIGURE 3-3 Early PC-based servers were tower-based systems with a large
footprint. They consumed considerable power and generated considerable heat.
As the use of the Internet became more widespread, companies extended their
e-mail communication beyond company users to vendors, customers, and others.
Things changed drastically with the commercialization of the web in 1995 and
the release of company websites. Initially, many companies brought in expensive
T1 or T3 Internet connections and housed their own web servers. These initial
servers looked like large desktop systems, as shown in FIGURE 3-3.

FIGURE 3-4 ISPs were the first to offer cloud-like remote computing services.

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For smaller companies, however, the cost to connect to the Internet was
prohibitive. As a result, Internet service providers (ISPs), which maintained web
servers and high-speed, high-bandwidth connections, began to emerge. As shown
in FIGURE 3-4, developers would use languages such as HTML, Perl, and active
server pages (ASP) to develop content locally and then use a file transfer
protocol (FTP) application to transfer the files to the server, which resides within
the ISP.
The advantages of hosting solutions at an ISP included the following:
• Reduced cost: The ISP provided the high-speed, high-bandwidth Internet
connection, which it shared across several companies.
• Less server administration: The ISP managed the servers to which
developers uploaded their solutions.
• Less hardware to purchase and maintain: The ISP purchased and managed
the hardware and managed the infrastructure software, such as the operating
system.
• Greater system uptime: Through the use of redundant hardware resources,
the ISP provided high system uptime.
• Potential scalability: The ISP had the ability to move a high-demand
application to a faster bandwidth connection.
As the use of the Internet and web continued to drive processing requirements,
many data centers began to move to blade servers, similar to that shown in
FIGURE 3-5, which required a smaller footprint, involved less cost, and could
easily access shared network devices.
By 2005, many companies used Windows- and Linux-based web servers that
were housed at remote ISPs and laid the groundwork for the eventual creation of
what we describe today as cloud-based PaaS solutions, as shown in FIGURE 3-6.

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FIGURE 3-5 Blade computers allowed companies to reduce server footprint,
power requirements, and heat within the data center.

FIGURE 3-6 The evolution of technology leading to cloud PaaS solutions.
CASE 3-2 FORCE.COM AS A PAAS
One of the best known software as a service (SaaS) solutions is Salesforce.com.
To extend its cloud capabilities to application developers, Salesforce.com has
released the Force.com PaaS. Although it was originally developed to provide a
home for business applications, Force.com now runs applications across most
sectors.
As shown in FIGURE 3-7, Force.com provides four different development
environments that sit in a cloud-based data management facility.

http://force.com/

http://salesforce.com/

http://force.com/

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http://force.com/

FIGURE 3-7 Force.com provides four primary development products that
leverage a cloud-based database.
The following briefly describes the Force.com application interface:
• Appforce: Provides a user interface that lets nonprogrammers create
applications to support finance, human resources, project management, and
more. Through a drag-and-drop interface, users can develop business solutions
without writing code.
• Siteforce: Provides the ability for nondevelopers to quickly create a data-rich
website using the Salesforce.com customer relationship management (CRM)
editor. Users do not need to know HTML or coding to produce powerful web
pages.
• VMforce: Provides a platform for Java-based solutions in which programmers
can code locally using the Eclipse integrated development environment (IDE)
and then drag and drop their solutions to VMforce.com for hosting.
• ISVforce: Provides a platform that independent software vendors can use to
distribute their applications and updates to users via the cloud. The platform
includes access to an application storefront that developers can use to expose
their application to potential customers.
The Force.com applications sit on top of a cloud-based database provided by
Salesforce.com at Database.com. The cloud-based database provides high
performance, scalability, backups, and data redundancy. Database.com provides
an API that developers can use within their programs to interact with the
database.
Exercise Assume your company’s vice president of sales wants to produce sales
reports from your company’s cloud-based sales data. Unfortunately, your
company does not have programming resources it can allocate to the project.
Discuss how your company might leverage a Force.com solution to meet the
requirement.

http://force.com/

http://salesforce.com/

http://vmforce.com/

http://force.com/

http://salesforce.com/

http://database.com/

http://force.com/

Web Resources For additional information on Force.com, see
www.CloudBookContent.com/Chapter03/index.html.
Benefits of PaaS Solutions
By shifting computing resources from an on-site data center to the cloud, PaaS
solutions offer many advantages:
• Lower total cost of ownership: Companies no longer need to purchase and
maintain expensive hardware for servers, power, and data storage.
• Lower administrative overhead: Companies shift the burden of system
software administration from in-house administration to employees of the cloud
provider.
• More current system software: The cloud administrator is responsible for
maintaining software versions and patch installations.
• Increased business and IT alignment: Company IT personnel can focus on
solutions rather than on server-related issues.
• Scalable solutions: Cloud-based solutions can scale up or down automatically
based on application resource demands. Companies pay only for the resources
they consume.
CASE 3-3 LONGJUMP AS A PAAS
LongJump provides a PaaS solution that includes cloud-based database
management support. What makes LongJump unique is its focus on the entire
software development life cycle. To start an application design, nonprogrammers
can capture business requirements, forms, and data relationships without
coding. The LongJump application development is Java based and supports key
protocols such as SOAP and REST. After the developer hosts the site, LongJump
provides release management and software maintenance support. Developers
can try LongJump free of charge.
Exercise Discuss the role of web services and specifically the use of the SOAP
and REST protocols.
Web Resources For additional information on LongJump, see
www.CloudBookContent.com/Chapter03/index.html.
Disadvantages of PaaS Solutions

http://force.com/

http://www.cloudbookcontent.com/Chapter03/index.html

Potential disadvantages of PaaS solutions include the following:
• Concerns about data security: Some companies are hesitant to move their
data storage off-site.
• Challenges to integrating cloud solutions with legacy software: A company
may need to support on-site solutions as well as cloud-based solutions.
Communication between the two application types may be difficult to
impossible.
• Risk of breach by the PaaS provider: If the company providing the PaaS
service fails to meet agreed-upon service levels, performance, security, and
availability may be at risk, and moving the application may be difficult.
CASE 3-4 NETSUITE AS A PAAS
NetSuite is somewhat of a hybrid in that it is a provider of both SaaS and PaaS.
On the SaaS side, NetSuite offers turnkey enterprise resource planning (ERP),
customer relationship management (CRM), and accounting solutions. The
benefits of using the NetSuite cloud-based solution include the following:
• Reduced total cost of ownership compared with running on-site solutions
within an IT data center
• Reduced duplication of data entry through the use of integrated storage
solutions
• Enhanced distributed access to computer data
• Simplified application updates because NetSuite maintains and manages
software solutions
On the PaaS side, NetSuite provides a development environment that sits on top
of the Net-Suite business solutions. Using a drag-and-drop environment,
developers can quickly build and deploy enterprise solutions.
Exercise Visit the NetSuite website and then discuss the role and capability of
drag-and-drop solutions that do not require a programmer to create and deploy
applications.
Web Resources For additional information on NetSuite, see
www.CloudBookContent.com/Chapter03/index.html.

http://www.cloudbookcontent.com/Chapter03/index.html

CASE 3-5 CLOUD FOUNDRY AS A PAAS
Cloud Foundry is an open source project enabled by VMware. Developers have
access to and contribute to the project. Cloud Foundry provides developers with
a complete PaaS solution that supports programming languages including Spring
for Java applications, Rails and Sinatra for Ruby, and other Java virtual machine
(JVM) frameworks. Cloud Foundry supports various open source databases, such
as MongoDB and MySQL.
The primary Cloud Foundry is multitenant, but through the use of MicroCloud,
developers can use a single instance of Cloud Foundry.
Exercise Research cloud applications on the web. Discuss the programming
languages that cloud developers use most often to implement the applications
they create.
Web Resources For additional information on Cloud Foundry, see
www.CloudBookContent.com/Chapter03/index.html.

CASE 3-6 OPENSHIFT AS A PAAS
Red Hat is well known for providing and supporting open source solutions. Red
Hat also distributes Red Hat Linux. OpenShift is the Red Hat PaaS offering, which
lets developers quickly deploy browser-based and command-line-based
applications. OpenShift has three primary development tools:
• Express: A free platform for cloud-based solutions written in PHP, Python, and
Ruby.
• Flex: Well suited for cloud-based Java, JBoss, and PHP solutions.
• Power: Designed for Linux-based solutions written in the C programming
language.
Exercise Discuss the pros and cons of using a Linux-based PaaS solution as
opposed to a Windows-based environment.
Web Resources For additional information on OpenShift, see
www.CloudBookContent.com/Chapter03/index.html.

http://www.cloudbookcontent.com/Chapter03/index.html

CASE 3-7 WINDOWS AZURE AND SQL AZURE AS A PAAS
Microsoft.NET has driven the development of many dynamic web solutions and
web services. Windows Azure is a PaaS running within Microsoft data centers.
Users pay only for the scalable processor resources that they consume. SQL
Azure provides a cloud-based database solution for applications running within
Windows Azure. FIGURE 3-8 illustrates the Windows Azure PaaS environment.
Windows Azure goes beyond .NET and includes support for Java, PHP, and Ruby.
Developers can build and deploy their solutions to Azure using an IDE such as
Visual Studio or Eclipse. Developers can interface to SQL Azure using much of the
same code they would use to access a local database.
Exercise Discuss advantages and disadvantages of using Microsoft as a PaaS
solution provider.
Web Resources For additional information on Windows Azure and SQL Azure,
see www.CloudBookContent.com/Chapter03/index.html.

FIGURE 3-8 The Windows Azure PaaS environment.
CHAPTER SUMMARY
A PaaS solution provides a collection of hardware and software resources that
developers use to build and deploy cloud-based applications. PaaS solutions run
a Windows- or a Linux-based operating system and normally support a specific
programming environment, such as .NET or Java.

http://microsoft.net/

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PaaS solutions eliminate the need for developers to buy and maintain hardware
and install and manage operating system and database software. Because the
PaaS computing resources reside in the cloud, the resources can scale up or
down based on application demand, and the company pays only for the resources
it consumes. Finally, because PaaS eliminates the developers’ need to worry
about servers, they can more quickly deploy their web-based solutions.
KEY TERMS
Cloud-based database
Integrated development environment (IDE)
Platform
CHAPTER REVIEW
1. Define and describe PaaS.
2. List the benefits of PaaS solutions.
3. Describe potential disadvantages of PaaS.
4. Describe how a cloud-based database management system differs from an
on-site database.
5. List the computing resources normally provided with a PaaS.
6. Assume your company must deploy a .NET solution to the cloud. Discuss the
options available to developers. Research on the web and estimate the costs
associated with deploying a PaaS solution.
7. Assume your company must deploy a PHP or Java solution to the cloud.
Discuss the options available to developers. Research on the web and estimate
the costs associated with deploying a PaaS solution.

chapter 4
Infrastructure as a Service (IaaS)
MANY COMPANIES THAT DEPLOY applications to the cloud will need a specific
platform, such as Windows, .NET, and Microsoft SQL Server, or Linux, Perl, and
MySQL. Utilizing a platform as a service (PaaS) solution eliminates the company’s
need to administer the operating system and supporting software. Other
companies, because of security needs or a desire to manage all resources, turn to
infrastructure as a service (IaaS) providers. An IaaS provider makes all of the
computing hardware resources available; the customers, in turn, are responsible
for installing and managing the systems, which they can normally do over the
Internet.
Learning Objectives
This chapter examines IaaS in detail. By the time you finish this chapter, you will
be able to do the following:
• Define and describe IaaS and identify IaaS solution providers.
• Define and describe colocation.
• Define and describe system and storage redundancy.
• Define and describe cloud-based network-attached storage (NAS) devices and
identify solution providers.
• Define and describe load balancing and identify cloud-based solution
providers.
• Describe the pros and cons of IaaS solutions.
Understanding IaaS
Running a data center is an expensive and staff-intensive process. To start, one
must create a facility with the following capabilities:
• Access to high-speed and redundant Internet service
• Sufficient air conditioning to eliminate the heat generated by servers and disk
storage devices

• Conditioned power with the potential for uninterrupted power supply in the
short term and long term through the use of on-site diesel-powered generators
• Fire suppression systems
• Administrative staffing to support hardware, networks, and operating systems
FIGURE 4-1 illustrates a typical data center facility.
After a company creates an operation data center, it has a second significant
problem—the data center is a single point of failure. Should the data center be
damaged by fire, flood, weather, or an act of terrorism, the company’s entire data
processing capabilities will be shut down.
To reduce the risk of a single point of failure, companies often create a duplicate
data center at a remote location, as shown in FIGURE 4-2. Should one of the data
centers fail, the other can immediately take over operations. Unfortunately, the
second data center will increase the company’s costs—essentially doubling
them—because there are duplicate servers, storage devices, network equipment,
Internet access, and staffing.

FIGURE 4-1 Racks of servers within a data center.

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FIGURE 4-2 To eliminate a single point of failure, many companies colocate
duplicate data centers.
For many smaller companies with simpler data processing needs, a PaaS may
eliminate the need for their own data center. As you will recall, a PaaS solution
typically provides one or more virtual servers running a specific operating
system, as shown in FIGURE 4-3. Most PaaS solutions eliminate the customer’s
need to manage the operating system and supporting software.
In contrast, larger companies or companies with specific server needs may
require their own independent server hardware and data storage devices. For
such situations, IaaS is ideal. An IaaS solution provides a customer with its own
hardware resources. You can think of IaaS as a mini data center within a large
data center facility. Most IaaS providers, as shown in FIGURE 4-4, house data
centers for multiple
companies. Because the IaaS provider spreads the cost of power, air
conditioning, fire suppression, and staff across multiple customers, it can
normally offer pricing that beats what each individual company would have to
pay for its own facility.
Further, just as with software as a service (SaaS) and PaaS solutions, customers
pay IaaS providers only for the resources consumed. Simply put, IaaS solutions
provide the least expensive (and fastest) way for companies to launch a data
center or colocation facility.

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FIGURE 4-3 PaaS solutions allow smaller companies to eliminate the need for
their own on-site data center.

FIGURE 4-4 IaaS providers normally house data centers for many companies.
Improving Performance Through Load Balancing
Across the web, sites experience a wide range of network traffic requirements.
Sites such as Google, Yahoo!, Amazon, and Microsoft experience millions of user
hits per day. To handle such web requests, the sites use a technique known as
load balancing, as shown in FIGURE 4-5, to share the requests across multiple
servers. For a simple web page, a client’s web browser requests an HTML page
and then the related graphics, CSS, and JavaScript files from the web server, as
shown in FIGURE 4-6.

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FIGURE 4-5 Load balancing uses a server to route traffic to multiple servers
which, in turn, share the workload.
When the demand becomes too great for the server, the company can place a
load-balancing server in front of two or more servers to which the load balancer
distributes the web requests. Load balancing for simple applications is quite
straightforward because either server can handle all requests.
When server-based applications become more complex, such as accessing data
within a database, the developers must provide shared access to the database. To
eliminate a single point of failure, companies often replicate copies of the
database on multiple servers. The database software, in turn, must then
synchronize data updates across the systems, as shown in FIGURE 4-7.
As an alternative, the company may choose to simplify the solution using a
cloud-based database or a cloud-based network-attached storage (NAS)
device, as shown in FIGURE 4-8. In this way, the applications do not need to worry
about the data synchronization and replication—that task is handled within the
cloud.

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FIGURE 4-6 A client (browser) typically makes multiple requests to a server in
order to download the HTML, CSS, JavaScript, and page graphics.
Taking a Closer Look at Load Balancing
To better understand load balancing, consider the processing that occurs when a
user visits a site such as Yahoo! To start, the user types in a domain name, such
as www.yahoo.com. The user’s web browser, in turn, sends the domain name to a
special server on the web called a domain name server (DNS), which, in turn,
returns the site’s (Yahoo!’s) Internet protocol (IP) address. As shown in FIGURE
4-9, the browser in then uses the IP address to contact the server.

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FIGURE 4-7 Load-balanced systems, for data redundancy purposes, often
replicate databases on multiple servers. Each database, in turn, will send data
updates to the other to maintain data synchronization between the servers.

FIGURE 4-8 Using a cloud-based NAS device and a cloud-based database to
handle database replication and load balancing.
When a site uses load balancing, the IP address returned by the DNS might
correspond to the load-balancing server. When the load balancer receives the
browser request, it simply sends the request to one of the servers on a
round-robin basis. If demand on the site increases, additional servers can be
added, to which the load balancer can distribute requests. Using a similar
technique, most IaaS solutions provide on-demand scaling and load balancing.

FIGURE 4-9 Web browsers use the IP address they receive from a DNS to access
a server on the web.
System and Storage Redundancy
One of the greatest benefits of cloud-based computing is that it does not matter
where the physical computing resources and data storage devices are located. As
a result, companies often employ duplicate off-site servers or disk storage
devices through a process known as colocation. As shown in FIGURE 4-10, by
employing duplicate resources, systems can fail over from one location to
another or they can use the duplicate systems for load balancing.
In this way, the colocated resources accomplish the following:
• Makes the company less susceptible to fire, acts of God, and terrorism
• Improves performance through a distributed workload
• Makes the company less susceptible to downtime due to power loss from a
blackout or brownout
Over the past few years, the low-cost options offered by IaaS providers have
made hardware redundancy a must-have item for companies that rely on the
availability of key applications and data. Likewise, by leveraging cloud-based
NAS devices and cloud-based database systems, companies can also easily
replicate their data, as shown in FIGURE 4-11.
IaaS providers allow companies to add servers, processors, and RAM to their
applications on demand. FIGURE 4-12 shows an administrator window that
allows an application administrator to select the resources the application
needs—scaling resources up or down. Further, IaaS providers can also scale

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resource allocation up or down automatically. Customers, in turn, pay only for
the resources they require.

FIGURE 4-10 Companies use colocated computing resources for system failover
or load balancing.

FIGURE 4-11 Using cloud-based NAS devices and cloud-based databases,
companies can replicate key data within the cloud.

FIGURE 4-12 Using an administrator menu to allocate application resources.
CASE 4-1 RACKSPACE IAAS
Rackspace has emerged as one of the largest players in the IaaS market.
Rackspace offers a set of solutions that include cloud hosting, managed hosting
(including 24/7 data-centerlike management), and hybrid solutions that
combine the cloud and managed services.
Within minutes, from the Rackspace website an administrator can select a
solution that deploys from 1 to 50 servers. Larger configurations are available.
Today Rackspace offers cloud-based solutions to hundreds of thousands of
clients. Rackspace houses its data centers at very large facilities located around
the world.
With respect to the cloud, Rackspace offers pay-as-you-go scalability, with
on-demand storage and load balancing. Beyond cloud hosting, Rackspace
provides solutions for cloud-based e-mail, Exchange hosting, file sharing,
backups, and collaboration.

Rackspace storage on demand is provided through a service called Cloud Files, a
high-performance file system that provides very inexpensive redundant storage.
The Cloud Files system was developed using OpenStack, a new open source
software initiative for building private and public clouds. The goal of OpenStack
is to create a massively scalable cloud operating system to accomplish the
following:
• Leverage open standards to produce an environment less susceptible to
vendor lock in (a situation in which a customer cannot easily move from an
existing vendor)
• Increase industry-wide cloud standards
• Provide a platform that leverages performance and flexibility
Exercise Assume your company is planning to release a new .NET-based
website. The company’s developers estimate the application will require 10
servers to manage the workload. Visit the Rackspace website and recommend a
solution for the company (you can use physical servers, virtual servers, or a
combination of both). What start-up and monthly costs should your company
expect?
Web Resources For additional information on Rackspace and OpenStack, see
www.CloudBookContent.com/Chapter04/index.html.
Utilizing Cloud-Based NAS Devices
Chapter 6, Data Storage in the Cloud, examines cloud-based data storage and
database systems in detail. The chapter also presents several solution providers.
For now, you should understand that companies can move their data storage to
the cloud in a number of ways. One of the most innovative disk storage solutions
utilizes cloud-based NAS devices, which present devices and applications as
mountable drives and file systems. Normally customers can scale their
cloud-based storage on demand and pay only for the storage they consume.

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FIGURE 4-13 Cloud-based NAS devices present cloud-based storage as
mountable devices, which may be replicated in the cloud to meet a company’s
data redundancy needs.
As shown in FIGURE 4-13, some cloud-based NAS devices provide
behind-the-scenes data replication for data redundancy needs.
CASE 4-2 NIRVANIX IAAS
Nirvanix provides a wide range of cloud solutions, from public, private, and
hybrid clouds to backup and off-site storage and CloudNAS, which is a
cloud-based NAS solution. As shown in FIGURE 4-14, CloudNAS is a
high-performance, scalable, secure, cloud-based file system that supports Linux-
and Windows-based applications.
By supporting both the Common Internet File System (CIFS) and the Network
File System (NFS), CloudNAS seamlessly integrates into existing applications. In
general, CloudNAS does not require programming or the development of an
application program interface (API).
Exercise Within the cloud, IaaS providers offer a variety of ways for users and
applications to access storage. Discuss the importance of having a cloud-based
mountable storage device.
Web Resources For additional information on Nirvanix and CloudNAS, see
www.CloudBookContent.com/Chapter04/index.html.

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FIGURE 4-14 The Nirvanix IaaS provides cloud-based NAS, which is accessible
through the CloudNAS file system.
Advantages of IaaS Solutions
In the simplest sense, IaaS is the process of providing the hardware necessary to
run an application. By utilizing IaaS solutions, companies eliminate the need to
house and maintain expensive data centers. Unlike PaaS, which also manages and
administers the operating system and support software, an IaaS solution
requires the customer to manage all software and take responsibility for
maintaining system updates. Advantages of using an IaaS solution include the
following:
• Elimination of an expensive and staff-intensive data center
• Ease of hardware scalability
• Reduced hardware cost
• On-demand, pay-as-you-go scalability
• Reduction of IT staff
• Ad hoc test environments suitability
• Complete system administration and management
Server Types Within an IaaS Solution

Within an IaaS environment, customers can acquire one or more servers. As
shown in FIGURE 4-15, these servers fall under one of three types:
• Physical server: Actual hardware is allocated for the customer’s dedicated
use.
• Dedicated virtual server: The customer is allocated a virtual server, which
runs on a physical server that may or may not have other virtual servers.
• Shared virtual server: The customer can access a virtual server on a device
that may be shared with other customers.
An IaaS physical server solution allocates one or more physical servers to the
customer. The servers will not be shared with other customers. The physical
server, because it is not shared by others, will be more expensive. However, the
customer will have complete control over the system.
A dedicated virtual server solution allocates to a customer one or more virtual
servers, which, as discussed in Chapter 8, Virtualization, runs on a server that has
special software installed to allow it to run multiple operating systems (which do
not have to be the same). Each operating system is protected from others on the
server and often can be configured by the customer. The virtual server is used by
only one customer, which, again, will result in a slightly higher cost per month.

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FIGURE 4-15 Within an IaaS environment, customers can allocate various server
types.
A shared virtual server solution allocates a shared virtual server to a customer.
The server may, for example, provide web server capabilities to multiple users.
The customer cannot configure the shared virtual server.
CASE 4-3 LAYERED TECH IAAS
Layered Tech supports grid, virtualization, and cloud computing platforms. With
Layered Tech solutions customers can quickly launch cloud-based applications,
satisfy backup and remote storage requirements, or utilize high-security,
high-availability servers.
Layered Tech provides traditional cloud-based services, such as dedicated
servers, virtual servers, and managed server solutions. In addition, Layered Tech
provides large-scale enterprise solutions, such as hosting, colocation, and
virtualization.
If a client performs e-commerce operations, Layered Tech provides a Payment
Card Industry (PCI)-compliant hosting system. By examining the PCI Data
Security Standard (DSS), you can gain considerable insight into cloud-based
security issues. For more information on the PCI DSS, visit the PCI Security
Standards Council website at www.pcisecuritystandards.org.
Exercise Many cloud-based sites implement e-commerce operations. Discuss the
purpose of and some of the standards involved in the PCI standards.
Web Resources For additional information on Layer Tech and PCI standards,
see www.CloudBookContent.com/Chapter04/index.html.
CHAPTER SUMMARY
Smaller companies that deploy applications to the cloud typically use a specific
platform, such as Windows, .NET, and Microsoft SQL, or Linux, Perl, and MySQL.
Companies that use a PaaS solution eliminate the need to administer the
operating system and supporting software. Larger companies, because of
security needs or a desire to manage all resources, turn to IaaS providers, which
make all of the computing hardware resources available but leave the customer
responsible for installing and managing the systems. This can normally be done
over the Internet. You can think of an IaaS solution as a turnkey remote data
center.

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KEY TERMS
CloudNAS
Colocation
Common Internet File System (CIFS)
Load balancing
Network-attached storage (NAS)
Network File System (NFS)
Redundancy
CHAPTER REVIEW
1. Define and describe IaaS.
2. Define and describe system redundancy. Discuss how you might use IaaS to
implement a redundancy plan.
3. Define and describe load balancing. Discuss how you might use IaaS to
implement load balancing.
4. Define and describe NAS. Assume you must implement a shared file system
within the cloud. What company would you select? Why? What costs should your
client expect to pay for cloud-based data on a gigabyte (GB) basis?
5. Define and describe colocation. Discuss how you might use IaaS to implement
colocation.
6. Compare and contrast a cloud-based disk storage device (with a file system)
with a cloud-based database.
7. Compare and contrast physical, dedicated virtual, and shared virtual servers.
Search the web for companies that provide each. What cost should a customer
expect to pay for each?

chapter 5
Identity as a Service (IDaaS)
TODAY, WITHIN MOST COMPANIES, users must log in to a variety of different
systems in order to perform various tasks. Some of the systems may be cloud
based, some may be based on local servers, and some may be accessible through
different devices. The challenge of having multiple servers to access is that users
must remember and manage multiple username and password combinations.
Further, if an employee leaves the company, the IT staff must coordinate with the
human resources department to ensure that each of the user’s accounts has been
disabled. User identity management (ID management) is difficult, time
consuming, and expensive. Over the past few years, companies have begun to
emerge to provide identity (or identification) as a service (IDaaS), or
cloud-based ID management.
Learning Objectives
This chapter examines cloud-based ID management in detail. By the time you
finish this chapter, you will be able to do the following:
• Describe challenges related to ID management.
• Describe and discuss single sign-on (SSO) capabilities.
• List the advantages of IDaaS solutions.
• Discuss IDaaS solutions offered by various companies.
Understanding Single Sign-On (SSO)
As discussed, business users today must log in to a variety of applications, which
may reside on many different servers. The users, therefore, must manage
numerous username and password combinations. To simplify user access to
multiple systems, many companies now use single sign-on (SSO) software,
which, as shown in FIGURE 5-1, requires the user to sign on only one time. Behind
the scenes, the SSO software manages the user’s access to other systems.
The advantages of SSO software include the following:

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• Fewer username and password combinations for users to remember and
manage
• Less password fatigue caused by the stress of managing multiple passwords
• Less user time consumed by having to log in to individual systems
• Fewer calls to help desks for forgotten passwords
• A centralized location for IT staff to manage password compliance and
reporting
The primary disadvantage of SSO systems is the potential for a single source of
failure. If the authentication server fails, users will not be able to log in to other
servers. Thus, having a cloud-based authentication server with system
redundancy reduces the risk of system unavailability.
Understanding How SSO Works
Although different implementations of SSO exist, many solutions employ a secure
ticket. When a user logs in to the authentication server, he or she is given a
secure ticket. Later, when the user accesses a server, that server, in turn,
validates the ticket with the authentication server. The authentication server, as
shown in FIGURE 5-2, not only confirms that the user is authorized to use the
server, but may also provide the user’s access rights that are specific to that
server.

FIGURE 5-1 An SSO system lets a user log in to a system one time and then move
freely among related servers and applications without having to authenticate
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Step 1: User logs into the authentication server using a username and password
Step 2: The authentication server returns the user’s ticket
Step 3: User sends the ticket to the intranet server
Step 4: Intranet server sends the ticket to the authentication server
Step 5: Authentication server sends the user’s security credentials for that server
back to the intranet server
FIGURE 5-2 SSO systems often assign authenticated users a ticket, which the
software presents behind the scenes to the servers that the user accesses. Each
server can use the ticket to determine the user’s access rights on that particular
server.
If an employee leaves the company, the IT staff need only disable the user at the
authentication server in order to disable the user’s access to all systems.
Understanding Federated Identity Management
As you examine SSO solutions, you may encounter the term federated identity
management (FIDM). In short, FIDM describes the technologies and protocols
that combine to enable a user to bring security credentials across different
security domains (different servers running potentially different operating
systems). Behind the scenes, many FIDM systems use the Security Assertion
Markup Language (SAML) to package a user’s security credentials, as shown in
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FIGURE 5-3 SAML allows software to package user security credentials.
Understanding Account Provisioning
In many companies, when an employee is hired the human resources department
sends an e-mail to the IT staff, who creates a user account for the employee.
Sometime during the employee’s first week, his or her manager will decide that
the employee needs to access other systems. The manager will send additional
e-mails to the IT staff requesting various account access. The process of creating
a user account on a system is called account provisioning. As you might guess,
because different employees may need different capabilities on each system, the
provisioning process can be complex.
When an employee leaves the company, a deprovisioning process must occur to
remove the user’s accounts. Unfortunately, the IT staff is not always immediately
informed that an employee no longer works for the company, or the IT staff
misses a server account and the user may still have access to one or more
systems.
CASE 5-1 PING IDENTITY IDAAS
Ping Identity provides cloud-based ID management software that supports FIDM
and user account provisioning. The company’s website provides an excellent
article called “The 4 A’s of Cloud Identity,” which are as follows:
• Authentication: The process of determining and validating a user for on-site
as well as cloud-based solutions.
• Authorization: The process of determining and specifying what the user is
allowed to do on each server.

• Account management: The process of synchronizing user accounts by
provisioning and deprovisioning access.
• Audit logging: The process of tracking which applications users access and
when. To perform its ID management, Ping Identity makes extensive use of
SAML.
Exercise Discuss the importance of the audit logging process within an IDaaS
solution.
Web Resources For additional information on Ping Identity and SAML, see
www.CloudBookContent.com/Chapter05/index.html.

CASE 5-2 PASSWORDBANK IDAAS
PasswordBank provides an IDaaS solution that supports on-site and cloud-based
system access. Its FIDM service supports enterprise-wide SSO (E-SSO) and SSO
for web-based applications (WebSSO). The PasswordBank solutions perform the
FIDM without the use of SAML. PasswordBank solutions support a myriad of
devices, including the iPhone.
Exercise Within the cloud, some IDaaS providers use SAML to package a user’s
security credentials, and some do not. Discuss the arguments for and against
using SAML.
Web Resources For additional information on PasswordBank, see
www.CloudBookContent.com/Chapter05/index.html.
Understanding OpenID
For companies to support FIDM across autonomous systems, the security
policies and protocols must be open. OpenID allows users to use an existing
account to log in to multiple websites. Today, more than 1 billion OpenID
accounts exist and are accepted by thousands of websites. Companies that
support OpenID include Google, Yahoo!, Flickr, Myspace, WordPress.com, and
more. For companies, the advantages of using OpenID include the following:
• Increased site conversion rates (rates at which customers choose to join
websites) because users do not need to register
• Access to greater user profile content

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• Fewer problems with lost passwords
• Ease of content integration into social networking sites

FIGURE 5-4 From the OpenID website, you can create your own OpenID
username and password, which you can then use to access thousands of
websites.
For more information on OpenID, or to get your own OpenID username and
password, visit the OpenID website at www.openid.net, as shown in FIGURE 5-4.
Mobile ID Management
Every day employees access e-mail and other business applications through
handheld devices. More and more business applications support mobile device
interfaces. The challenge for developers today is not only getting content to the
mobile device, but also securing the device. Threats to mobile devices include the
following:
CASE 5-3 SYMPLIFIED IDAAS
Symplified provides ID management solutions for on-site and cloud-based
applications. The solutions support a variety of device types, such as mobile
devices. Symplified solutions support SAML and non-SAML-based applications,

OpenID

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which significantly extends the company’s product reach. Symplified’s key
products include:
• Symplified Access Manager: This compliance tool provides on-demand web
access management for access control and audit of software as a service (SaaS),
private cloud, and public cloud applications.
• Symplified Identity Manager: This account management tool provides user
account support for on-site and SaaS solutions.
• SinglePoint: This platform as a service (PaaS) solution provides a cloud-based
platform for deploying ID management, with the following capabilities:
• Access control
• Authentication
• Auditing
• Federation
• Provisioning and user management
• Support for portals
Exercise Symplified provides IDaaS solutions for on-site and cloud operations.
Discuss the additional requirements and challenges of implementing a solution
for cloud-based applications over on-ground applications.
Web Resources For additional information on Symplified and the company’s
IDaaS solutions, see www.CloudBookContent.com/Chapter05/index.html.
• Identity theft if a device is lost or stolen
• Eavesdropping on data communications
• Surveillance of confidential screen content
• Phishing of content from rogue sites
• Man-in-the-middle attacks through intercepted signals
• Inadequate device resources to provide a strong security implementation
• Social attacks on unaware users that yield identity information
CHAPTER SUMMARY

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To accomplish a wide range of tasks, users must often log in to a variety of
different systems. Today some of the systems may be cloud based and some may
reside on local servers. Further, users often access servers (and their services)
through different devices. Requiring users to access multiple servers means that
users must often remember and manage multiple username and password
combinations. To reduce this burden on users as well as the IT staff who must
help retrieve forgotten passwords, many companies now use a technique called
SSO. Users log in to a central authorization server that, in turn, uses a ticket that
grants users access to other specific servers without requiring them to log in
again. In this way, users must remember only one username and password.
If an employee leaves the company, the IT staff need only disable the user’s
account on the centralized authorization server in order to shut down the user’s
access to all other servers.
User ID management is difficult, time consuming, and expensive. To address the
challenges and cost of user management, many companies are turning to IDaaS
solutions that reside in the cloud.
KEY TERMS
Federated identity management (FIDM)
Identity (or identification) as a service (IDaaS)
Provisioning
Security Assertion Markup Language (SAML)
Single sign-on (SSO)
CHAPTER REVIEW
1. Define and describe SSO.
2. Define and describe IDaaS.
3. Define SAML and describe its purpose.
4. Define and describe provisioning.
5. Define and describe FIDM.
6. List factors that make mobile ID management difficult.

chapter 6
Data Storage in the Cloud
CHAPTER 4, “INFRASTRUCTURE AS a Service (IaaS),” examined the process of
using a service provider’s servers and data storage equipment. Within the IaaS
model, the customer is responsible for installing and maintaining the software
that runs on the platform. Chapter 4 introduced the use of cloud-based data
storage and databases.
Learning Objectives
This chapter will examine cloud-based storage in detail. By the time you finish
this chapter, you will be able to do the following:
• Discuss the role of storage-area networks.
• Discuss the role of network-attached storage.
• Describe cloud-based storage solutions.
• List the pros and cons of cloud-based storage.
• Describe cloud-based database solutions.
• List the pros and cons of cloud-based databases.
• Describe specific cloud-based data storage solutions such as backups and
encrypted file storage.
• Provide an example of an industry-specific cloud-based storage solution.
Examining the Evolution of Network Storage
Years ago, local-area networks used special servers, called file servers, to support
file sharing, file replication, and storage for large files. As shown in FIGURE 6-1,
the file server was a server on the network with large disk capacity that users
could use to store and retrieve files. Over time, operating systems, specifically the
file system within the operating system, evolved to allow users and applications
to open files directly on the file server.

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FIGURE 6-1 Local-area networks had one or more file servers that users could
access across the network to store and retrieve files.
As computer networks evolved, the file server was extended through the use of
storage-area networks (SANs), which, as shown in FIGURE 6-2, could make one
or more storage devices appear to be directly connected to the network. Behind
the scenes, the devices were actually connected to SAN hardware through the use
of network cables. Software running within the SAN device made the devices
appear directly accessible to the rest of the network.
As storage demands continued to increase—as did disk storage
capacities—network-attached storage (NAS) devices emerged, which, as shown
in FIGURE 6-3, plug directly into the network.
The advantages of SANs include the following:
• Reliability: A NAS device typically provides advanced data striping across
multiple volumes within the device. If one (or more) volumes fail, the data
striping would maintain the data and allow reconstruction of the file contents.
• Performance: Because a NAS device does not run a complete operating
system, the hardware has less system overhead, which allows it to outperform a
file server.

FIGURE 6-2 SANs allowed administrators to connect various storage devices to a
computer network.

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FIGURE 6-3 NAS devices are disk volumes that plug directly into the network.
• Compatibility: NAS devices normally support common file systems, which, in
turn, make them fully compatible with common operating systems.
• Ease of performing backups: NAS devices are commonly used for backup
devices. Within a home, for example, all devices can easily access and back up
files to a NAS device.
Understanding Cloud-Based Data Storage
Cloud-based data storage is the next step in the evolution of NAS devices. Across
the web (the cloud), many providers offer data storage that resides in the cloud.
Depending on your access needs, the data may be accessible as follows:
• Through a web browser interface that lets you move files to and from the
storage area using a variety of devices
CASE 6-1 HOMEPIPE REMOTE FILE ACCESS
Many users now rely on cloud-based storage to provide them with access to files
from anywhere at any time, often with any device. Despite that, users still
encounter situations when the file they need resides on a computer at their home
or office—often because they made a last-minute change and forgot to upload the
file to the cloud. That’s where HomePipe comes to rescue. HomePipe is a
program that lets users access files on their own system from anywhere on the
web. Further, HomePipe supports file access from a variety of devices. And
beyond that, HomePipe makes it easy for you to share specific files with other
users. FIGURE 6-4 illustrates the use of HomePipe to access files on a remote
system using a web browser.
Exercise Compare and contrast the use of HomePipe with that of a tool such as
GoToMyPC.

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www.CloudBookContent.com/Chapter06/index.html.

FIGURE 6-4 Using HomePipe to access files from a system across the Internet.
• Through a mounted disk drive that appears locally to your computer as a disk
drive letter or mounted file system
• For application developers, the storage area may present itself through a set of
application program interface (API) calls
CASE 6-2 ZUMODRIVE CLOUD-BASED STORAGE
ZumoDrive provides cloud-based storage that is scalable to meet customer
needs. The company lets a customer get started at no charge and provides
sufficient space to store a considerable number of documents. The files that are
stored on ZumoDrive are accessible from a variety of devices. From their own PC,
customers can use the web interface shown in FIGURE 6-5 to move files to or from
ZumoDrive.
In addition, you can map a drive letter to your ZumoDrive storage and the access
your cloud-based files as you would files from your local system. FIGURE 6-6
shows ZumoDrive as drive Z within Windows Internet Explorer.

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Exercise Discuss why a user may need access to cloud-based storage from a
variety of device types.
Web Resources For more information on ZumoDrive, see
www.CloudBookContent.com/Chapter06/index.html.

FIGURE 6-5 ZumoDrive provides a web interface that lets users easily move files
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FIGURE 6-6 ZumoDrive lets users map a logical drive letter to their cloud-based
storage area.
Advantages and Disadvantages of Cloud-Based Data Storage
Cloud-based data storage provides the following advantages:
• Scalability: Most cloud-based data storage providers let you scale your storage
capacity (up or down) to align with your storage needs.
• Pay for use: With most cloud-based data storage facilities, users pay only for
the storage (within a range) that they need.
• Reliability: Many cloud-based data storage facilities provide transparent data
replication.
• Ease of access: Most cloud-based data storage facilities support web-based
access to files from any place, at any time, using a variety of devices.
• Ease of use: Many cloud-based data storage solutions let users map a drive
letter to the remote file storage area and then access the files through the use of a
logical drive.
Disadvantages of cloud-based storage include the following:
• Performance: Because the cloud-based disk storage devices are accessed over
the Internet, they will never be as fast as local drives.
• Security: Some users will never feel comfortable with their data in the cloud.
• Data orphans: Users may abandon data in cloud storage facilities, leaving
confidential private or company data at risk.
CASE 6-3 DROPBOX CLOUD-BASED FILE SHARING AND SYNCHRONIZATION
Most users today manage their content on a variety of devices. Dropbox is a
cloud-based storage facility for photos, documents, and other digital content.
After you download and install Dropbox, your system will have a user-level
Dropbox folder, as shown in FIGURE 6-7.
When you place a file into the Dropbox folder (either by cutting and pasting,
dragging and dropping, or saving), a copy of the file is automatically saved to the
Dropbox cloud storage facility. If you later need to access the file from another
computer, you can simply log in to your Dropbox account on the web, and, as
shown in FIGURE 6-8, your files will be accessible through your browser.

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Dropbox also makes it very easy for users to share files. If, for example, you place
a file within the Dropbox Public folder, you can then send a link to other users,
which they can use to access the file. Dropbox supports a variety of devices. Also,
Dropbox lets users try the software free of charge and provides them with ample
storage space to get started.
Exercise Discuss the benefits of having web-based access to a cloud storage area.
Web Resources For more information on Dropbox, see
www.CloudBookContent.com/Chapter06/index.html.

FIGURE 6-7 Users can easily drag and drop files to the Dropbox file folder
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FIGURE 6-8 Dropbox users can access their files through the web, from any
device.

CASE 6-4 MICROSOFT SKYDRIVE
Cloud-based data storage systems allow users to access their documents from
any place at any time. Given Microsoft’s presence within software as a service
(SaaS) and platform as a service (PaaS) solutions, you might expect them to have
a significant presence within cloud-based storage—and you would be right.
Microsoft SkyDrive provides cloud-based data storage. Through the SkyDrive
web interface, you can drag and drop files to and from the cloud, as shown in
FIGURE 6-9.
What makes SkyDrive special is that if the PC from which you are accessing the
files does not have Microsoft Office installed, SkyDrive lets you launch Word,
Excel, and PowerPoint documents within Microsoft Office Web Apps, as shown
FIGURE 6-10.

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Exercise Discuss the need for a company to have a policy covering the types of
documents employees can store within the cloud.
Web Resources For more information on SkyDrive, see
www.CloudBookContent.com/Chapter06/index.html.

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FIGURE 6-10 Using Microsoft Office Web Apps to access cloud-based documents
within SkyDrive.

CASE 6-5 MOUNTING CLOUD DEVICES USING GLADINET
As you have learned, most cloud-based data storage facilities provide a
drag-and-drop user interface that you can use to move files to and from the
cloud. Some cloud storage systems also let you access your files using a logical
disk drive letter, treating the cloud-based files as if they reside on a disk drive
that is local to your system.
Gladinet provides software you can use to mount many cloud-based data storage
services as a drive letter. FIGURE 6-11, for example, shows Microsoft SkyDrive
mounted using a drive letter. In this way, you can access the SkyDrive-based files
just as you would any files on your system.
Exercise Discuss what it means to mount a storage device and the importance of
being able to do so.

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Web Resources For more information on Gladinet, see
www.CloudBookContent.com/Chapter06/index.html.

FIGURE 6-11 Mounting a SkyDrive file system using Gladinet.
Getting Past the Fear of Cloud-Based Data
As discussed, one of the disadvantages of cloud-based data storage is that some
users simply do not feel comfortable placing their data within the cloud. One
approach to such user apprehension is to encrypt the files that you place on the
cloud. Several companies offer software that will encrypt and decrypt files on the
fly, as they are sent to and retrieved from the cloud.
CASE 6-6 BOXCRYPTOR CLOUD-BASED FILE ENCRYPTION
BoxCryptor is a software tool that encrypts and decrypts cloud-based files on a
file-by-file basis. When you install BoxCryptor, the installation process will create
a folder within your cloud-based folder on your system and will map a drive
letter to that folder. When you use the drive letter to store a file, BoxCryptor will
encrypt the file and place the encrypted contents on the cloud. When you later
retrieve the file, BoxCryptor will decrypt the file on the fly. If a hacker gains
access to your cloud storage, the encrypted file’s contents will be unusable, as
shown in FIGURE 6-12.
Exercise Discuss your level of confidence that files residing in the cloud are
secure.

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FIGURE 6-12 Encrypted BoxCryptor files within the cloud.

CASE 6-7 MOZY CLOUD-BASED BACKUPS
Mozy provides cloud-based backups for personal and business users. Mozy
provides an encrypted backup and runs without the need for user intervention
on Windows- and Mac-based systems. Mozy has existed as a company since 2005
and has millions of customers worldwide. FIGURE 6-13 shows a Mozy screen with
which you select files for your backup set.
Exercise Discuss the pros and cons of cloud-based file backups.
Web Resources For more information on Mozy, see
www.CloudBookContent.com/Chapter06/index.html.

FIGURE 6-13 Selecting files for backup within Mozy.
Cloud-Based Backup Systems
In Chapter 2, Software as a Service (SaaS), you examined the Carbonite
cloud-based backup software. Several companies provide cloud-based backup
capabilities. The features that most companies provide are similar:
• Files are backed up in an encrypted format.

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• Users can schedule when backup operations are to occur.
• Users can easily retrieve backup files from the cloud.
• Most systems support Windows, Linux, and Mac OS.
Understanding File Systems
Operating systems exist to allow users to run programs and to store and retrieve
data (files) from one user session to the next. Within the operating system,
special software, called the file system, oversees the storage and retrieval of files
to and from a disk. When you copy a file, delete a file, or create and move files
between folders, the file system is performing the work.
Initially, file systems allowed users to manipulate only local files that reside on
one of the PC’s disk drives. As networks became more prevalent, so too did
network operating systems, which allow users and programs to manipulate files
residing on a device across the network. A cloud file system (CFS) allows users
or applications to directly manipulate files that reside on the cloud.
CASE 6-8 ORACLE CLOUD FILE SYSTEM
Oracle is one of the world’s leading database solution providers. Oracle has
on-site and cloud-based database solutions. In addition, Oracle offers a
cloud-based file system that users can use to store and retrieve files that will
reside outside of the database. As shown in FIGURE 6-14, the Oracle Cloud File
System resides above cloud-based storage devices and supports Windows- and
Linux-based applications.
The advantages of Oracle’s Cloud File System include the following:

FIGURE 6-14 Oracle provides a cloud-based file system that is accessible by
Windows and Linux.

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• Snapshot-based file recovery: Files can be recovered to a specific data
snapshot that allows simpler fallback.
• File group by tagging: Users can associate one or more files via a tag name
grouping for subsequent group-based file operations, such as replication.
• File replication: Key files can be replicated across multiple volumes.
• Access-control-based security: Administrators can finely control access to
specific files via access control lists.
• Encryption: The Oracle Cloud File System supports file-by-file, directory, or
file system encryption.
Exercise Explain the process of snapshots and how it may be important to an
application developer.
Web Resources For more information on the Oracle Cloud File System, see
www.CloudBookContent.com/Chapter06/index.html.

CASE 6-9 APACHE HADOOP DISTRIBUTED FILE SYSTEM
Apache Hadoop is an open source project, the goal of which is to support
reliable, scalable distributed computing. Part of the project includes the Hadoop
Distributed File System (HDFS), a Java-based file system that is well suited for
cloud-based storage. HDFS is designed to be highly fault tolerant and robust to
maintain operation in the event of a device failure. For specifics on HDFS, visit
http://hadoop.apache.org/hdfs.
Exercise Discuss the features of Hadoop that make it well suited for a
cloud-based file system.
Web Resources For more information on the Hadoop system, see
www.CloudBookContent.com/Chapter06/index.html.
Today several cloud file systems are emerging that allow users and programs to
manipulate files residing in the cloud.
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Across different industries, groups have different data storage and access
requirements. The healthcare industry, for example, is working to standardize
secure electronic medical records, which, as shown in FIGURE 6-15, will be
accessible from the cloud by a variety of medical facilities.

FIGURE 6-15 In the future, healthcare data will be accessible in real time to a
wide range of medical facilities, some on-ground and some mobile.
CASE 6-10 MICROSOFT HEALTHVAULT
Microsoft HealthVault provides a secure storage facility within which people can
store their medical records, prescriptions, and even measurements from a
variety of medical devices. People can use Microsoft HealthVault to track their
own medical records or those of family members for whom they assist with
medical care. After you store records within Microsoft HealthVault, you can
e-mail a link to a physician, other healthcare personnel, or a family member to
grant access to all or specific records. You can also set an expiration date that
removes an individual’s access. FIGURE 6-16 shows the Microsoft HealthVault
home page.
Exercise Discuss potential risks of placing your health data within the cloud.
Web Resources For more information on HealthVault, see
www.CloudBookContent.com/Chapter06/index.html.

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FIGURE 6-16 Microsoft HealthVault lets users store medical records within the
cloud.
Cloud-Based Database Solutions
Many PaaS solutions include support for a database, such as Microsoft SQL
Server or MySQL. Often these database solutions connect to a cloud-based server,
as shown in FIGURE 6-17, and, as such, can be considered a cloud-based database.
A better definition of a cloud-based database, however, is a database that can be
used not only by applications that reside (are hosted) in the cloud, but also by
applications that reside within the customer’s on-site data center, as shown in
FIGURE 6-18.

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FIGURE 6-17 A cloud-based database provided with a PaaS solution.
Advantages of cloud-based database solutions include the following:
• Cost-effective database scalability: Cloud-based databases can scale
dynamically to meet customer needs on a pay-as-you-go basis.
• High availability: Cloud-based database systems normally reside on
redundant hardware, which results in high system uptime.
• High data redundancy: Cloud-based databases are normally replicated
behind the scenes to increase data availability.
• Reduced administration: The cloud-based database provider maintains the
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FIGURE 6-18 A cloud-based database should be accessible by systems across the
web.
The disadvantages of cloud-based databases include the following:
• Data security concerns: Some users still do not feel comfortable storing a
database system in the cloud.
• Performance: Because data queries may travel the Internet, the cloud-based
database access will not be as fast as a local database solution.
CASE 6-11 MICROSOFT SQL AZURE
Microsoft SQL Azure is a cloud-based database solution that supports not only
Windows Azure PaaS, but, as shown in FIGURE 6-19, on-site applications as well.
As you would expect, SQL Azure provides scalability, database replication, load
balancing, and automatic server failover.
Exercise Discuss the steps a developer must perform to connect to an SQL Azure
database.
Web Resources For more information on SQL Azure, see
www.CloudBookContent.com/Chapter06/index.html.

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FIGURE 6-19 SQL Azure is a cloud-based database that supports local (PaaS
server-based access) and remote application access.

CASE 6-12 AMAZON CLOUD-BASED DATABASE SOLUTIONS
As discussed in Chapter 1, Introducing Cloud Computing, Amazon is one of the
leading providers of cloud-based hosting solutions. To meet developer demands
for cloud-based database storage solutions, Amazon provides two key solutions:
• Amazon Relational Database Service (Amazon RDS): A web service that
makes available the capabilities of MySQL and Oracle through API web service
calls
• Amazon SimpleDB: A scalable, nonrelational data store in which developers
can quickly store and query data items using API-driven web service calls
Exercise Discuss reasons why Amazon chose to support MySQL and Oracle
databases.
Web Resources For more information on the Amazon database solutions, see
www.CloudBookContent.com/Chapter06/index.html.

DATABASE.COM CLOUD-BASED DATABASE

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Database.com provides applications with access to a cloud-based database
through a library of API calls. All access to the underlying database is via
developer-written code. Database.com does not provide a user interface to the
database—instead, its focus is on the database itself:
• Administration: Database.com administers all aspects of the database.
• Performance tuning: Database.com monitors and manages the overall
database performance.
• Scalability: Database.com can scale a solution up or down dynamically to meet
user demands.
• Backups: Database.com manages data backups and redundancy.
• Disaster recovery: Database.com provides redundant hardware and storage
to reduce the risk of a disaster.
Developers create applications that call the Database.com API using a variety of
programming languages, including C#, Java, Perl, PHP, Ruby, and more.
Exercise Discuss the pros and cons of restricting database access to developers
using an API.
Web Resources For more information on Database.com, see
www.CloudBookContent.com/Chapter06/index.html.
Cloud-Based Block Storage
In the simplest sense, a block of data storage is a fixed-sized sequence of bits. The
size of the block normally corresponds to an underlying unit of storage on the
cloud-based block storage device. Some applications work with very large
blocks of data, the format of which has meaning only to the application
itself—meaning that the data may not map well to storage within a file system or
database. To support applications with large data block needs, Amazon provides
the Amazon Elastic Block Store (EBS), a highly reliable, scalable, and available
block storage solution. EBS supports block sizes up to a terabyte.
The data within the EBS is simply a collection of bits. To manage the block data in
a meaningful way, developers may need to create their own file system. In this
way, the applications that use the cloud-based block storage are in complete
control of the data contents.
CLOUD DATA MANAGEMENT INTERFACE (CDMI)

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The Storage Networking Industry Association (SNIA) is a not-for-profit
association consisting of members from hundreds of companies that share the
goal of standardizing data storage solutions. SNIA is working on the Cloud Data
Management Interface (CDMI), which defines the behind-the-scenes functional
interface that applications will use to create, retrieve, update, and delete
cloud-based data items.
A goal of CDMI is that cloud-based storage facilities be discoverable to
applications. This means that applications can query the facility for the data
services it provides. In addition, CDMI is setting the stage for metadata
assignment to data items that will be key to the development of Web 3.0
semantic capabilities.
Exercise Discuss the role of metadata within cloud-based data storage.
Web Resources For more information on the CDMI, see
www.CloudBookContent.com/Chapter06/index.html.
CHAPTER SUMMARY
Within PaaS and IaaS solutions, customers often take advantage of
provider-based disk storage solutions. In some cases, users don’t need
cloud-based processing capabilities, but rather scalable and replicated data
storage solutions. In such cases, users and applications can access cloud-based
data storage and cloud-based database systems. In some cases local (on-site)
applications may access the cloud-based storage, and in other cases the
applications may also reside in the cloud. This chapter examined a variety of
cloud-based data storage solutions. As you learned, many of the data storage
providers include a web-based user interface that lets users access files
anywhere at any time, often with any device. Further, some systems allow users
to mount the remote storage area using a logical disk drive to which they can
refer as they would any local disk drive letter.
KEY TERMS
Cloud-based block storage device
Cloud Data Management Interface (CDMI)
Cloud file system (CFS)
File system
Storage-area network (SAN)

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CHAPTER REVIEW
1. Define and describe a SAN.
2. Define and describe NAS.
3. Describe how cloud-based data storage works.
4. Assume that you must select a cloud-based data storage solution for your
company. List the factors you would consider when selecting a vendor.
5. Many users do not yet feel comfortable storing data within the cloud. Discuss
some steps you can take to reduce their concerns.
6. Assume that you must select a cloud-based data storage solution for your
company. List the factors you would consider when selecting a vendor.
7. List the pros and cons of cloud-based data storage.
8. List the pros and cons of a cloud-based database.

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chapter 7
Collaboration in the Cloud
IT WASN’T ALWAYS A good thing when people at a meeting were said to have
their heads in the clouds. Today, however, cloud-based meetings and
cloud-based collaboration tools are some of the information technology
industry’s hottest items. What began as web-based e-mail has exploded to
include cloud-based conference meetings, face-to-face voice over Internet
protocol phone calls on virtually any device, document sharing, and streaming
media content.
Learning Objectives
This chapter examines cloud-based collaboration in detail. By the time you finish
this chapter, you will be able to do the following:
• Define and describe collaboration.
• Define and describe cloud-based collaboration.
• List the benefits of cloud-based collaboration.
• List and describe cloud-based tools for document sharing.
• List questions that one should consider with respect to cloud-based
collaboration tools.
• Discuss the potential uses of cloud-based streaming media, from presentations
to TV.
Collaborating in the Clouds
In the simplest sense, collaboration is the process of two or more people
working together to achieve a result (a goal). For years, teams would meet in
conference rooms to collaborate. Depending on the scope and importance of the
project, some team members would fly in for face-to-face meetings. Those team
members who could not attend would call in to the speakerphone, which was
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FIGURE 7-1 The cloud provides team members with a variety of tools with
which they can collaborate.
With the advent of the cloud has come a vast collection of distributed or remote
collaboration tools, as shown in FIGURE 7-1.
Questions to Ask About Collaborative Tools
Regardless of the collaborative technology you are considering, there is a
common set of questions you should consider:
Can the solution scale to meet the organization’s future needs?
• Is the solution secure?
• What are the solution’s start-up and operational costs?
• How will the solution impact the company’s IT staffing and resource
requirements?
• What are the solution’s learning curve and training requirements?

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FIGURE 7-2 Most web-based applications today, such as Google Gmail, support
computer-based and handheld devices.
Web-Based Collaboration Began with Web Mail
One of the first tools for collaboration on the web (it wasn’t always known as the
cloud) was web mail. Using only a web browser, users could access their e-mail
from any computer at any time. Today web mail has evolved to support access
from a wide range of devices. FIGURE 7-2a and FIGURE 7-2b, for example, show
Google Gmail from within a computer and an iPhone.
CASE 7-1 MICROSOFT EXCHANGE ONLINE
Many companies today use Microsoft Exchange to meet their e-mail and
calendar-management needs. Microsoft Exchange Online moves Exchange from
the data center into the cloud. The advantages of Microsoft Exchange Online
include the following:
• Users can access their e-mail and calendar-management tools from any place,
at any time, with any device.
• Microsoft manages the Exchange Online software, keeping software versions
and patches up to date.
• Companies maintain full control over user e-mail settings.
• Users have virtually unlimited e-mail storage, eliminating the need to move
messages to an archive folder.

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Exercise Discuss pros and cons of a company hosting its Exchange server within
the cloud.
Web Resources For more information on Microsoft Exchange Online, see
www.CloudBookContent.com/Chapter07/index.html.
Instant Messaging Isn’t What It Used to Be
For years, users took advantage of instant messaging (IM) to send a short
message to another user outside of e-mail or to have a text-based real-time chat.
There is no cost for IM, and the user with whom one was chatting could reside in
the next cubicle or across the globe. Today many companies still rely on IM to
provide text-based technical support. FIGURE 7-3 shows a text-based chat within
Windows Live Messenger.
Over time, IM tools have expanded to support file sharing and even face-to-face
video. FIGURE 7-4 shows a video-based IM session.

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FIGURE 7-3 The IM text-based interaction provided one of the web’s early forms
of collaboration.

FIGURE 7-4 IM tools have grown from a text-based medium for message
exchange to support audio and video streaming.
CASE 7-2 SKYPE VOICE OVER INTERNET PROTOCOL (VOIP ) MESSAGING
It used to be that users around the globe could have text-based chats in real time
using IM. Skype changed the computer communications playing field when it
used voice over Internet protocol (VoIP) to let users place phone calls over the
web. Using Skype, computer users can make face-to-face calls, as shown in FIGURE
7-5.
Skype then enhanced its services to allow users to make calls from a computer to
a traditional phone or mobile phone. In fact, using Skype, mobile users can call
each other to talk face to face. Further, as shown in FIGURE 7-6, Skype has
expanded its services to support group-based conference calling.
Exercise Discuss advantages and disadvantages to using VoIP to drive a
company’s phone system.
Web Resources For more information on Skype, see
www.CloudBookContent.com/Chapter07/index.html.

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FIGURE 7-5 Skype leverages VoIP to allow users to place face-to-face or
audio-only calls over the Internet.

FIGURE 7-6 Using Skype to place VoIP-based conference calls.
Cloud-Based Phone and Fax Systems
Although faxing is becoming (or has become) an ancient technology, businesses
still must be able to send and receive a fax. Fortunately, cloud-based companies
have made the process of sending and receiving a fax as easy as sending and

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receiving an e-mail message. In this way, no matter where you are, or which
device you have, you can easily send and receive a fax.
CASE 7-3 MYFAX FAXES ANYWHERE, ANYTIME
MyFax is one of several companies that have made the faxing process very easy
for those without a fax machine or a land-based phone line. After you sign up for
MyFax, you will receive a phone number that corresponds to your virtual fax
machine. When, as shown in FIGURE 7-7, someone sends a fax to you, MyFax
sends the fax contents to your e-mail as a PDF file. In this way, you can receive
your faxes any time, any place, with any device.
To send a fax, you simply e-mail the document to your MyFax account. Software
at MyFax, in turn, will send the document’s contents to the recipient’s fax
machine (or virtual fax account).
Exercise Discuss the potential cost savings to a company for using cloud-based
faxing.
Web Resources For more information on MyFax, see
www.CloudBookContent.com/Chapter07/index.html.

FIGURE 7-7 Cloud-based fax services deliver faxes as PDF documents to a user’s
e-mail.
For years companies have relied on expensive phone systems to manage
employee calls and group-based conference calls. Today, with most employees in
possession of a cell phone, most phone operations can be controlled by software.
In fact, several companies now provide cloud-based phone systems that will
record and optionally transcribe voice messages and send the corresponding text
to a user’s e-mail as a PDF document.

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CASE 7-4 GOOGLE VOICE PHONE SYSTEM
Many people don’t like to give out their cell phone numbers to businesses or to
strangers. A great solution is to create a Google Voice account, which provides a
cloud-based answering system and voice mail. You can also direct Google Voice
to forward calls to your cell phone, and if a caller leaves a voice mail, Google
Voice will transcribe the voice content into text. Later, from any device, you can
retrieve your recorded voice message or view the message transcript, as shown
in FIGURE 7-8. Also, Google Voice is free!
Exercise Discuss the advantages of using a cloud-based phone system for
personal or company use.
Web Resources For more information on Google Voice, see
www.CloudBookContent.com/Chapter07/index.html.

FIGURE 7-8 Google Voice provides you with a virtual phone account that you can
forward to your phone. You can receive voice messages or direct Google Voice to
transcribe the voice messages as text.
Revisiting File Sharing
In Chapter 6, Data Storage in the Clouds, you learned that most cloud-based data
storage providers allow you to share folders with other users. Using the shared
folder, you can easily exchange photos, documents, and other digital content. In

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this way, users do not have to track and later manage a myriad of e-mail
attachments.
Within collaborative environments, however, users often need to edit the same
document, sometimes at the same time. Fortunately, many cloud-based disk
storage providers now facilitate simultaneous editing capabilities.
Editing Shared Files Within the Cloud
Depending on a document’s size, complexity, and project guidelines, there are
times when users will need to edit the contents of the same document at the
same time. As you might guess, depending how (and how many) users are editing
the document, managing changes to the text can be challenging for collaborative
editing software. In other words, if two users edit the same section of text, it
becomes tricky to determine which user’s edits to apply.
One of the most popular Web 2.0 tools for document sharing is the wiki, which
lets users collaborate on web-based content. The best-known wiki is Wikipedia,
the online user-content-driven encyclopedia, shown in FIGURE 7-9.
Using wiki software, users can edit shared content. After the edits are saved, the
document’s new contents are displayed on the web. Depending on the wiki
software, changes to text may have to first be approved by a page moderator; or
the wiki software may track edited versions of the content to make it easy to fall
back to previous content if users choose to discard a change or content addition.
Many wikis are public and accessible to all users on the web. Some wiki software,
however, supports private content, which is well suited for company-based
internal messaging and documents.
The advantages of using a wiki for shared content include the following:
• Any member of the team can add or edit content.
• Most users quickly learn how to edit content within the wiki.
• Team members who edit the wiki content can reside anywhere.
• The edits to wiki content are immediate.
The disadvantages of using a wiki for shared content include the following:
• Because any member can edit the content, wikis sometimes contain errors.
• Public wikis are often targets of hacking and spam.

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• The wiki’s free-flowing format may lead to disorganized content.
• Users are often suspicious of wiki content validity and accuracy.

FIGURE 7-9 Wikipedia provides the largest collection of web-based,
user-contributed, and user-edited content.

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CASE 7-5 WIKIA FREE WIKI HOSTING
Getting started with a wiki is very easy. To begin, you select the cloud-based host
at which your wiki will reside. Your selection of a wiki site may include such
factors as content versioning, content moderator approval, support for private
content, and so on. FIGURE 7-10 illustrates a wiki focused on cloud computing,
which I created in a matter of minutes using the Wikia editor.
Exercise Discuss the pros and cons of using a wiki for online editing of
cloud-based documents.
Web Resources For more information on Wikia, see
www.CloudBookContent.com/Chapter07/index.html.

FIGURE 7-10 Creating a cloud-based wiki, which discusses cloud-based topics
and uses free software at Wikia.

CASE 7-6 GOOGLE DOCS FOR DOCUMENT SHARING

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Google Docs provides users with web-based, free access to a word processor,
spreadsheet, and presentation program—yes, Google Docs are meant to compete
directly with the Microsoft Office tools. By default, the documents that you create
using Google Docs reside in the cloud. That said, you can easily save your
documents to a local file on your computer’s disk, print your documents, or share
the document’s contents with other Google Docs users. To share a Google Docs
document, you simply e-mail a link to the document to other users.
FIGURE 7-11, for example, illustrates a presentation on cloud computing that was
created using Google Docs. The user can access the document using various
devices.
Exercise Discuss the pros and cons of using Google Docs for business-based
documents.
Web Resources For more information on Google Docs, see
www.CloudBookContent.com/Chapter07/index.html.

FIGURE 7-11 Accessing a cloud-based Google Docs presentation from different
devices.
CASE 7-7 MICROSOFT OFFICE WEB APPS
In Chapter 2, Software as a Service (SaaS), you learned about Microsoft Office
365, which provides cloud-based implementations of Word, PowerPoint, and
Excel to users for a monthly fee. Given the popularity of the cloud-based Google
Docs, Microsoft responded with Microsoft Office Web Apps—a scaled-down
version of its office productivity tools. Using Office Web Apps, you can, free of
charge, create a Word, PowerPoint, or Excel document; upload and edit your

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existing documents; or share your documents with other users for viewing or
editing. FIGURE 7-12 shows a PowerPoint presentation created with Microsoft
Office Web Apps.
To share an Office Web Apps document, you simply e-mail a link to the document
to another user. Depending on the permissions you have set, the user can view or
edit the document’s contents.
Exercise Discuss the pros and cons of a business using Microsoft Office Web
Apps in lieu of licensing the complete Office suite for each employee.
Web Resources For more information on Microsoft Office Web Apps, see
www.CloudBookContent.com/Chapter07/index.html.

FIGURE 7-12 Microsoft Office Web Apps lets users create and share (for
simultaneous editing) cloud-based Word, Excel, and PowerPoint documents.

CASE 7-8 MICROSOFT SHAREPOINT ONLINE
For years, many companies have used Microsoft SharePoint to provide a
centralized document repository. Because the SharePoint user interface is
similar to that of other Microsoft applications, users quickly come up to speed,
and employees who move from a different company that uses SharePoint have
only a small learning curve.

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In Chapter 2, Software as a Service (SaaS), you learned that Microsoft now makes
its Office suite of products available to the cloud through Office 365. Within
Office 365, Microsoft includes SharePoint Online, the cloud-based version of the
software.
The advantages of Microsoft SharePoint Online include the following:
• Ease of sharing documents
• Centralized storage for key team documents
• Ease of document searching and referencing
• Support for internal and external company sites
• Centralized storage for company reports and data
Exercise Discuss how Microsoft SharePoint Online differs from other web-based
document-sharing utilities.
Web Resources For more information on Microsoft SharePoint Online, see
www.CloudBookContent.com/Chapter07/index.html.
Collaborating via Web Logs (Blogs)
With the advent of Web 2.0, one of the most widely used communication tools
has become the web log, or blog. Blogs allow virtually anyone, with little or no
web development experience, to easily publish content on the web. Blogs can
provide one-way or two-way communication—that is, some users post read-only
content to blogs, while others allow readers to comment on the content. Over the
past few years, blogs have become so successful that many newspapers have
replaced printed content with digital blogs.
The primary advantages of blogs include the following:
• Blogs provide a device-independent way for content consumers to access
digital content using only a web browser.
• Users can create and publish content to a blog with little or no web
development experience.
• Within an organization, intranet-based blogs provide a convenient way to
disseminate information.
• Blogs provide an effective way to collect feedback from readers.

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The disadvantages of blogs include the following:
• Maintaining a blog takes time.
• Blogs can become opinion posts as opposed to fact posts.
• User feedback may not always be positive and may require moderation.
Collaborative Meetings in the Cloud
One of the biggest cost savings to businesses due to the cloud is the advent of the
virtual meeting. Using sites such as WebEx and GoToMeeting, businesses can
now reduce travel costs through cloud-based meetings. Additional benefits of
cloud-based meetings include the following:
• Streaming video that allows face-to-face interaction
• Shared whiteboards that presenters can use to easily control the presentation
of PowerPoint, Word, Excel, or related documents
• Accessibility to users, in most cases, through a myriad of devices
• Shared applications that let presenters easily demonstrate software live within
a controlled environment
• The ability to hold company training online instead of on-site
• The ability to record meetings for playback at a later time
CASE 7-9 WORDPRESS, A LEADING BLOG SITE
Creating a blog is very easy. To start, you locate a free blog hosting provider
within the cloud, such as WordPress. After you sign up, you will have access to a
text editor, which you can use to create your blog.
Most blog providers offer a free user account, which is often advertising based.
For a monthly fee, providers may eliminate advertisements, allow greater
storage capacity, support streaming media such as video, and allow a user
domain name. FIGURE 7-13 shows a blog in edit mode and the same content
within presentation mode at WordPress.
Exercise Discuss the pros and cons of using a blog to present content on behalf
of a company. Discuss the type of content for which a blog may be most
appropriate.

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Web Resources For more information on WordPress, see
www.CloudBookContent.com/Chapter07/index.html.

FIGURE 7-13 Blogs provide users who have no web development experience
with the ability to easily publish content on the web.

CASE 7-10 GOTOMEETING VIRTUAL MEETINGS

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GoToMeeting is one of the leading providers of virtual meetings. The site offers a
variety of scalable solutions that should meet most organizations’ needs. Using
GoToMeeting, companies can host face-to-face meetings with two users or
webinars that include 1,000 or more attendees. FIGURE 7-14 illustrates a virtual
presentation within the GoToMeeting environment.
Exercise Discuss the pros and cons of virtual meetings in lieu of face-to-face
on-site meetings.
Web Resources For more information on GoToMeeting, see
www.CloudBookContent.com/Chapter07/index.html.

FIGURE 7-14 Virtual meetings allow companies to reduce expensive travel while
maintaining the benefits of face-to-face interaction.
Virtual Presentations and Lectures
Using cloud-based tools such as WebEx and GoToMeeting, companies can easily
host virtual meetings. Often companies will also want to place within the cloud
multimedia content that users can access asynchronously at a time that best
meets the users’ schedules. Using products such as Articulate or iSpring
Presenter, companies can record and post cloud-based virtual presentations
that may be used for marketing, virtual training, and more. The advantages of
virtual presentations include the following:

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• The costs of production and hosting for multimedia content are low.
• Users can play back content at a time that best meets their needs and as often
as they desire.
• Companies can create a library of virtual marketing or training presentations.
• Virtual presentation software is migrating to handheld devices.
Using Social Media for Collaboration
Facebook is obviously the most successful Web 2.0 site. Using Facebook, users
communicate with friends to share photos, videos, and text messages. Further,
using Facebook groups, teams can share project information in a secure way.
Because Facebook resides within the cloud, it must be considered a cloud-based
collaborative tool. The advantages to using a social media tool for collaboration
include the following:
• Users can exchange project information from anywhere, at anytime, with any
device.
• Groups can keep team content secure.
• Most users are already familiar with the social media user interface.
CASE 7-11 ZENTATION VIRTUAL PRESENTATION SOFTWARE
Zentation provides a PowerPoint to streaming-media converter, which allows
users to easily deploy multimedia presentations from the cloud. What makes
Zentation unique is that it supports the integration of streaming video, as shown
in FIGURE 7-15. Zentation not only provides software that will combine a video
and PowerPoint, but it also offers cloud-based hosting.
Exercise Discuss potential ways a company might leverage virtual presentations.
Web Resources For more information on Zentation, see
www.CloudBookContent.com/Chapter07/index.html.

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FIGURE 7-15 Streaming a virtual presentation from the cloud.

CASE 7-12 SALESFORCE.COM CHATTER
Salesforce.com was one of the first companies to fully exploit the power of the
cloud. Salesforce.com Chatter is a tool, like social media, that integrates with
other Salesforce.com tools to improve communication, coordination, and data
sharing. Using Chatter, employees can do the following:
• Collaborate privately and securely
• Share project documents and presentations
• Exchange thoughts, ideas, and status information with other group members
• Integrate Salesforce.com reporting data for improved communication and
information sharing
Rather than having employees log into a traditional social media site, companies
may prefer that team interaction occur within a more professional setting.
Exercise Discuss ways that companies might leverage social networking tools
beyond sales management and customer relationship management.

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Web Resources For more information on Salesforce.com Chatter, see
www.CloudBookContent.com/Chapter07/index.html.

CASE 7-13 GOOGLE CALENDAR
Because it is free, cloud accessible, and easy to use, many users turn to Google
Calendar. Users can easily share their schedule with others they choose. Further,
users can delegate others as schedule administrators with the right to schedule
or cancel meetings on the user’s behalf. FIGURE 7-16 shows the cloud-based
Google Calendar user interface.
Exercise Discuss tools beyond schedule management that would make sense for
companies such as Google to support in the cloud.
Web Resources For more information on Google Calendar, see
www.CloudBookContent.com/Chapter07/index.html.

FIGURE 7-16 Using the cloud-based Google Calendar to manage meetings and
appointments.
Using Cloud-Based Calendar Management
Within a busy organization, it can be difficult to schedule meetings, reserve
meeting space, and track one’s own appointments and meetings. Many

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companies use a calendar, such as that built into Microsoft Outlook, to manage
employee appointments and meetings. Smaller companies, which may not have
an Exchange server, may turn to cloud-based calendars, the advantages of which
include the following:
• No software other than a web browser is required
• Calendars are accessible through most devices
• Many cloud-based calendars will sync with other applications
Using Streaming Video Content to Collaborate
YouTube is one of the Web 2.0 success stories. Each year users upload hundreds
of millions of videos, containing a wide variety of content, to YouTube. Many
companies use YouTube to market their products and services and even to
deploy corporate training. YouTube supports video access from all web browsers
and most handheld devices. Users are free to determine when and from where
they retrieve the video content. More important, users can easily update their
own videos to the YouTube cloud-based storage and then share the videos with
other users. FIGURE 7-17 illustrates an overview of cloud-based video processing
at YouTube.
Cloud-Based TV Content
Over the past few years, many households have gotten rid of their land-based
phone lines in lieu of cellular phones. Recently, a similar phenomenon is taking
place that has people getting rid of television sets and instead using cloud-based
movie downloads and streaming content. In the near future, companies may also
leverage streaming content to provide their own messaging, marketing, and
training.

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FIGURE 7-17 YouTube makes it very easy for users to upload and later stream
video content to and from the cloud.
© 2010 salesforce.com, inc. All rights reserved. Used with permission.
CASE 7-14 HULU STREAMING CONTENT
Hulu is a website that offers on-demand streaming of TV shows, movies, film
clips, webisodes (episodes created specifically for the web), and more. Hulu
supports media streaming to a variety of devices. FIGURE 7-18, for example,
presents a TV show streaming from the cloud-based Hulu website.
Exercise Discuss how companies such as Netflix and Hulu are changing how
users view television and movies.
Web Resources For more information on Hulu, see
www.CloudBookContent.com/Chapter07/index.html.

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FIGURE 7-18 Hulu is one company that is deploying streaming media content
from the cloud, on demand.
CHAPTER SUMMARY
Collaboration is the process of two or more people working together to achieve a
result (a goal). It used to be that teams would meet in conference rooms to
collaborate. Depending on the scope and importance of the project, some team
members would fly in for face-to-face meetings. Those team members who could
not attend would call in to a speakerphone. The cloud, however, has changed the
ways in which teams collaborate. Today, using cloud-based tools, team members
can do the following:
• Use cloud-based conferencing software to present documents, share desktops,
and benefit from face-to-face video.
• Collaborate in real time and edit the same documents.
• Share calendars to simplify appointment scheduling.
• Use VoIP-based audio or video chats from anywhere with any device.
• Take advantage of virtual faxing services to send and receive faxes, without
using a fax machine.
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• Communicate with team members using wikis and blogs.
• Leverage familiar tools that are like social media for group interaction.
• Stream media for marketing, training, or messaging purposes.
KEY TERMS
Blog
Collaboration
Instant messaging (IM)
Streaming media
Virtual meeting
Virtual presentation
Voice over Internet protocol (VoIP)
Wiki
CHAPTER REVIEW
1. Define collaboration.
2. Define and describe cloud-based collaboration.
3. The CIO of Ace Accounting Services suggests that the company can save
considerable money using VoIP for phone calls. Define and describe VoIP. Then
present three companies that provide VoIP offerings. Compare and contrast each
company’s offering. Also, discuss whether or not you agree with the CIO and
justify your opinion.
4. List the questions one should consider when evaluating a cloud-based
collaborative solution.
5. Jan, a project manager at Smith Electronics, wants her team to be able to easily
share and edit documents. Most of the documents are Word files—letters and
memos—along with many presentations. Discuss the solution that you would
recommend to Jan.
6. Mary, the human resources vice president for Baker Equipment, needs to train
500 remote employees on the company’s new sexual-harassment policy.
Describe the cloud-based solution you would recommend to Mary and why.

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Within your discussion, include the costs that Mary should expect for the
cloud-based training.
7. Describe the pros and cons of using the following collaboration tools:
• Wiki
• Blog
• IM
• Shared documents

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chapter 8
Virtualization
VIRTUALIZTION IS THE USE of hardware and software to create the perception
that one or more entities exist, although the entities, in actuality, are not
physically present. Using virtualization, we can make one server appear to be
many, a desktop computer appear to be running multiple operating systems
simultaneously, a network connection appear to exist, or a vast amount of disk
space or a vast number of drives to be available.
Learning Objectives
This chapter examines virtualization in detail. By the time you finish this chapter,
you will be able to do the following:
• Define and describe virtualization.
• Discuss the history of virtualization.
• Describe various types of virtualization.
• List the pros and cons of virtualization.
• Identify applications that are well suited, as well as those that are not suited,
for virtualization.
• Describe why companies should employ virtualization.
Understanding Virtualization
Virtualization uses hardware and software to create the illusion that two or more
entities are present, when there is only one physical entity in existence. The most
common forms of virtualization include the following:
• Server virtualization: Making one server appear as many. Each virtual
server may run the same or different operating systems. Server virtualization
provides greater CPU utilization, a smaller equipment footprint, less power
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• Desktop virtualization: This allows a user to switch between multiple
operating systems on the same computer. (An operating system that resides
within a virtualized environment is known as a guest operating system.) Some
desktop virtualization techniques can provide an operating system environment
on demand. Desktop virtualization provides support for multiple operating
systems, which is very convenient for software developers, testers, and help desk
support staff. In addition, desktop virtualization leads to ease of computer
maintenance and reduces desktop IT staff administration.
• Virtual networks: These create the illusion that a user is connected directly to
a company network and resources, although no such physical connection may
exist. Virtual networks are sometimes called virtual private networks or VPNs.
Using a virtual private network, users can connect to a network and access the
network resources from any Internet-connected computer. Virtual networks also
allow network administrators to segment a network, making different
departments such as management, development, and sales appear to have their
own separate networks.
• Virtual storage: This provides users (and applications) with access to scalable
and redundant physical storage through the use of abstract, or logical, disk drives
or file systems, or a database interface.

FIGURE 8-1 Virtual memory combines RAM with a page file on disk to create the
illusion, to running programs, of the existence of a vast amount of RAM.
The History of Virtualization
Although virtualization has, over the past few years, become one of the hottest
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virtual operating system that allowed a mainframe computer to run multiple
copies of the same or different operating systems. Further, most operating
systems support virtual memory, which, as shown in FIGURE 8-1, combines
random access memory (RAM) and a page file on disk to create the illusion that a
process (a running program) has much more physical RAM than is present in the
computer. Windows, Linux, Mac OS, and other operating systems all support
virtual memory.
CASE 8-1 VIRTUAL MEMORY
Virtual memory is not physical memory (RAM). Instead, virtual memory
combines RAM and space on a connected disk, called a page file, to create the
illusion, to running programs, that a vast amount of RAM exists.
Before the CPU can execute a program, the program’s instructions and data must
reside within RAM. Virtual memory takes advantage of the fact that not all of the
program’s instructions or data must be in RAM at the same time. Rather, the CPU
needs only the instructions and data with which it is currently working to reside
in RAM.
A virtual memory operating system breaks a program’s instruction and data into
fixed-size chunks called pages. When the CPU needs specific instructions or data,
the operating system loads the corresponding page from disk into RAM. When
the CPU no longer needs a set of instructions or data, the operating system can
move the pages from RAM back to disk. This process of moving pages between
RAM and the page file on disk is called paging.
The advantages of virtual memory include the following:
• A running program (process) appears to have unlimited memory.
• The operating system can easily manage several different programs, running at
the same time, and keep each program’s data and instructions secure.
• The operating system can take advantage of disk storage, which is considerably
less expensive than RAM.
The disadvantage of virtual memory is that the paging process (the process of
moving instructions and data between RAM and disk) adds overhead, mostly
because disk drives are much slower than RAM.

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Exercise With computers supporting larger amounts of physical memory, some
users argue that there are applications for which users should turn off virtual
memory to improve performance. Discuss whether you agree.
Web Resources For additional information on virtual memory, see
www.CloudBookContent.com/Chapter08/index.html.
Leveraging Blade Servers
For years, when user demands required additional servers, the IT department
would add a physical server box within the data center, as shown in FIGURE 8-2.
Although the server box met user demands, each box consumed space within the
data center and required considerable power.

FIGURE 8-2 Server computers originally required their own chassis, disk, power
supply, and fan. Servers consumed considerable power, took up considerable
space, and generated considerable heat within the data center.
CASE 8-2 GREEN COMPUTING INITIATIVE
Years ago many people made the claim that computers, e-mail, and computer
networks would reduce the vast number of printed pages and that many forests
would be spared. Unfortunately, the “less paper” thing never happened. Worse
yet, with desktops, laptops, and handheld devices now touching all aspects of our
lives 24/7, most devices never get powered off!
The result is that computer and device power usage is growing at exponential
rates. Because of the impact that computers now play with respect to our
environment, many green computing initiatives have emerged. Some general
guidelines for green computing include the following:

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• Power off devices when they are not in use.
• Power up energy-intensive devices, such as laser printers, only when needed.
• Use notebooks when possible instead of desktop computers.
• Use the computer’s built-in power management features.
• Minimize unnecessary printing.
• Dispose of e-waste (devices, ink cartridges, monitors, and so on) in compliance
with government regulations.
For more specifics on green computing, visit the Green Computing Initiative
website hosted by the University of California, Berkeley, shown in FIGURE 8-3.
Exercise Discuss potential cost savings for a company supporting green
computing initiatives.
Web Resources For additional information on green computing, see
www.CloudBookContent.com/Chapter08/index.html.

FIGURE 8-3 The Green Computing Initiative details a variety of techniques and
best practices.
As the server boxes were outgrowing many data centers, the blade server was
born. In short, the blade server, as shown in FIGURE 8-4, is a scaled-down server

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designed to consume less power and to fit within a rack with other blade servers,
while still matching or exceeding the processing potential of chassis-based
servers.
To share disk space, blade servers support network-attached storage (NAS)
devices. Additional advantages of blade servers include the following:
• Consume less physical space (footprint)
• Consume less power
• Generate less heat and are easier to cool
• Easy to install and configure
Server Virtualization
Most servers today are either very busy, running at a high level of CPU
utilization, or are idle a significant portion of the time, waiting for something to
do. As you have learned, when a server becomes very busy, the IT staff may, as
shown in FIGURE 8-5, introduce a load-balancing server and then add additional
servers, as necessary, to handle the workload.

FIGURE 8-4 The blade server is designed to fit within a rack with other blade
servers. This reduces the server’s physical footprint, makes the server easier to
cool, and reduces the server’s power consumption.

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FIGURE 8-5 Using load balancing, the IT staff can supply the number of servers
necessary to meet the server workload at a given time.
In contrast, when a server is idle, the server’s potential processing power is being
wasted. For a cloud-based platform as a service (PaaS) provider, such wasted
processing time is a wasted revenue opportunity.
To reduce server idle time and to protect one client’s server from another, PaaS
providers use special software to divide the single physical server into multiple
virtual servers. As shown in FIGURE 8-6, each virtual server may run a different
operating system.
Improving CPU utilization is one reason to virtualize servers. Second, some
companies (including PaaS providers) need to support multiple server operating
systems. Fortunately, several tools exist to make it easy to virtualize most server
operating systems.

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FIGURE 8-6 Through virtualization, a single physical server can be made to look
like multiple separate servers, potentially running different operating systems.
CASE 8-3 MICROSOFT WINDOWS SERVER VIRTUALIZATION
Given Microsoft’s aggressive approach to cloud computing, it makes sense that
Microsoft would also aggressively pursue client and server virtualization.
Microsoft servers now utilize an underlying technology the company refers to as
Hyper-V to allow administrators to create virtual servers.
The advantages of Microsoft Hyper-V technology include the following:
• The ability to consolidate servers and increase CPU utilization
• Enhanced business continuity and disaster recovery
• Ease of deploying testing and support environments
• Enhanced support for Windows-based client virtualization
• Improved load balancing
• Ability to move live virtual machines from one physical server to another on
the fly for load balancing and scalability
Exercise Assume your company primarily deploys .NET-based solutions.
Periodically, however, your company releases a PHP or Perl solution running
under Linux. Discuss the pros and cons of using Microsoft-based virtual servers.
Web Resources For additional information on Microsoft server virtualization,
see www.CloudBookContent.com/Chapter08/index.html.
Within a virtual server, to support the execution of multiple operating systems,
each operating system is actually installed on top of special software called the
hypervisor. The hypervisor, in turn, essentially manages each operating
system’s execution and resource use.
CASE 8-4 VMWARE ESXI
VMware is one of the best-known providers of virtualization solutions. For
companies that need to support multiple operating systems within a

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virtual-server environment, VMware ESXi provides the solution. That said, ESXi
is more than a simple server-virtualization tool. ESXi provides the following:
• Support for multiple operating systems
• Server consolidation
• Automated resource management to drive disaster recovery and service-level
agreements
• Detail cost-reporting services
• Automated load balancing
• Centralized management and administration of virtual servers and the
underlying machines
Exercise Assume your company must deploy virtual-server solutions for
Windows and Linux. You anticipate that you will require only one physical server
running the two virtual operating systems. Research and discuss the pros and
cons as well as the costs of using VMware server virtualization.
Web Resources For additional information on VMware server virtualization, see
www.CloudBookContent.com/Chapter08/index.html.
Desktop Virtualization
If you continue thinking in terms of the server-virtualization model, virtualizing
the desktop means allowing the system to run multiple operating systems at the
same time, as shown in FIGURE 8-7. The term for a desktop computer that runs
two or more operating systems is a virtual desktop.
If you consider a software tester who must test multiple operating system
platforms, or a help desk staff member who must answer calls from users
running a variety of operating systems, you can understand how the ability to
quickly switch between operating systems is very convenient and powerful.
The advantages of desktop virtualization of operating systems include the
following:
• A single desktop computer can simultaneously run multiple operating systems.
• There is reduced need for duplicate hardware.

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• Less power is consumed.

FIGURE 8-7 Desktop virtualization allows a desktop computer to run two or
more operating systems at the same time and allows a user to quickly switch
between the systems.
CASE 8-5 PARALLELS DESKTOP 4 WINDOWS AND LINUX
Parallels Desktop 4 for Windows and Linux lets users easily integrate and install
multiple Windows- and Linux-based operating systems on the same desktop
computer. Users can then quickly switch between operating systems as easily as
clicking the mouse on the target operating system window. FIGURE 8-8 shows
Windows and Linux running on the same desktop computer using Parallels
Desktop 4 for Windows and Linux.
Exercise Assume that your company has 10 programmers who write and test
code for applications running on Windows and Linux, and they must also support
applications running on these operating systems. Discuss the pros and cons as
well as the costs of using Parallels Desktop 4 for Windows and Linux.
Web Resources For additional information on Parallels Desktop 4 for Windows
and Linux, see www.CloudBookContent.com/Chapter08/index.html.

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FIGURE 8-8 Using Parallels Desktop 4 for Windows and Linux to allow users to
quickly switch between operating system environments.
The primary disadvantage of the virtual desktop is that the system incurs
overhead due to the virtualization and will not be as fast as an identical
standalone system running a single operating system.
Desktop Solutions on Demand
For years, desktop computer management went something like this:
• A new employee joins the company. The IT staff, in turn, prepares a computer
with the needed software and delivers it to the new employee’s desk.
• When it comes time to upgrade software, an IT support member carrying a
CD-ROM disk would visit each desktop computer and take as long as needed to
install the software. A high-tech data center, would then have a desktop
administrator push the upgrade across the network either at night or early in the
morning.

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• When users encountered problems, the IT staff member would again show up
at the user’s desk to troubleshoot the problem, or the high-tech data center
would have a help desk support team member remotely log in to the user’s
computer from across the network.
• Users who were frustrated with the IT staff and its processes would simply
install software on their own systems, which the company may or may not own.
In any case, managing user desktop computers took time, money, and labor.
With faster computer networks, along with the migration to cloud-based
solutions, the approach to desktop management is changing. Today many data
centers are moving to on-demand delivery of desktop operating system
environments. In this way, when a user logs in to a system, he or she receives
access to his or her system customizations, assigned operating system, and
needed applications.
CASE 8-6 MICROSOFT DESKTOP VIRTUALIZATION
Most desktop computers today run a Windows operating system and a Microsoft
suite of applications (normally Office). To simplify the management of such
desktop systems, Microsoft provides a suite of desktop virtualization tools:
• Microsoft Virtual Desktop Infrastructure (VDI) suite
• Microsoft Application Virtualization (App-V)
• Microsoft Enterprise Desktop Virtualization (MED-V)
• Microsoft Remote Desktop Services (RDS)
• Microsoft User State Virtualization (USV)
• Windows Thin computer
The advantages of the Microsoft desktop virtualization include the following:
• Simplified desktop management across the enterprise
• Access to user profiles and data from any computer
• Improved business continuity

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• Improved management of software licenses
• Improved security and business compliance
Exercise Assume that your company has 1,000 desktops, for which your CIO
wants to deliver an operating system and environment on demand. Discuss
which Microsoft desktop virtualization tools you would require and the
corresponding cost.
Web Resources For additional information on Microsoft desktop virtualization,
see www.CloudBookContent.com/Chapter08/index.html.
As shown in FIGURE 8-9, in an on-demand operating system, software and user
settings are pushed to a desktop across the network.
Because the operating system and applications reside within a centralized
location within an on-demand environment, administrators can easily apply
patches and software upgrades, which are transparently downloaded to the
user’s computer the next time he or she logs in. Further, the on-demand
environment frees the user from ties to any one specific computer. A user can log
in to the system from any network computer and receive his or her work
environment.

FIGURE 8-9 On-demand operating system environments deliver a user’s
operating system, environment customizations, and needed applications to any
computer the user logs in to.
CASE 8-7 VMWARE VIEW

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As one of the top leaders within the virtualization space, VMware offers View, a
tool for providing virtual desktops on demand. Using View, system
administrators can centralize the on-demand delivery of an operating system
and user-assigned applications. The advantages of VMware View include the
following:
• Simplified desktop operating system and application management
• Automated desktop provisioning (account generation)
• Virtual-desktop image management
• Support for a variety of client platforms
Exercise Discuss the pros and cons of using VMware, as opposed to Microsoft, to
implement a company’s desktop virtualization.
Web Resources For additional information on VMware View desktop
virtualization, see www.CloudBookContent.com/Chapter08/index.html.
Virtual Networks
Networks allow users to share resources such as printers, storage devices, and
applications. Most businesses utilize a local-area network (LAN) to connect
users. Typically, LANs are just that—the cables or wireles devices that connect
users are local to a specific office, building, or campus, as shown in FIGURE 8-10.
Often users who travel and users who work from remote locations must connect
to the company’s LAN in order to accomplish specific tasks. In such cases, the
users can use special software to create a virtual private network (VPN)
connection to the LAN. VPN software, as shown in FIGURE 8-11, uses a secure
Internet connection to give the user the illusion that he or she is physically
connected to the remote network from his or her current location.

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FIGURE 8-10 LANs are designed to allow users to share resources within a
localized environment such as a home, business, office building, or small campus.

FIGURE 8-11 A VPN creates the illusion of a secure physical connection to a LAN
using software and/or hardware to connect the user across the Internet.
When multiple employees work remotely, there may be times when the group
needs to establish its own network in order collaborate securely and effectively.
Rather than establish a physical network for the group, companies will configure
a virtual local-area network (VLAN), which uses special routers to segment part
of the physical network in such a way that the group appears to have its own
private network.
CASE 8-8 WINDOWS VPN SUPPORT
Across the web, several companies, including Cisco, provide advanced VPN
support. Should you need to get a VPN connection up and running quickly,
however, Windows provides both client and server support. FIGURE 8-12, for
example, shows the Windows Create VPN Connection dialog box that lets a client
establish a VPN connection across the Internet. To create the connection, the
user needs only to know the IP address or domain name of the remote VPN
server.

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Exercise Discuss the pros and cons of using VPN software provided with
Windows as opposed to licensing or buying a solution from a network company
such as Cisco.
Web Resources For additional information on Windows VPNs, see
www.CloudBookContent.com/Chapter08/index.html.

FIGURE 8-12 Windows provides client and server support tools that users can
use to establish a VPN connection.
In a similar way, for internal security purposes, companies may use virtual
networks to create separate networking environments for sales, management,
development, and support, as shown in FIGURE 8-13.
Again, many companies such as VMware and Cisco provide support for the
creation, management, and security of VLANs.
Data Storage Virtualization

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Chapter 6, Data Storage in the Cloud, discussed cloud-based data storage in detail.
You learned that the advantages of cloud-based data storage include the
following:
• Scalable disk storage space on demand
• The ability to pay as you go for the needed storage
• Behind-the-scenes backup and data replication
• Support for common operating systems
• Access from anywhere, anytime, and essentially any device
• Ease of document sharing

FIGURE 8-13 Virtual networks create the illusion of two or more stand-alone
networks.
The primary disadvantages of cloud-based storage include the following:
• Some users are not comfortable with their data residing in the cloud.
• Cloud-based file access is slower than local file access due to network
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Data storage virtualization essentially separates the physical data storage from
the logical presentation that users (and applications) use to access the device.
For example, computer users will often partition a large (physical) hard drive
into two more logical drives (often drives C and D).
The process of making a device available to a user or application is called
mounting the device. As you learned in Chapter 6, several cloud-based data
storage providers allow users to mount the virtual storage so that the user can
refer to the storage area using a familiar disk drive letter.
Again, as shown in FIGURE 8-14, the data storage virtualization hides the physical
details of the actual storage device, which makes it very easy for administrators
to scale the available storage space.

FIGURE 8-14 Data storage virtualization hides the physical storage device or
devices from the logical presentation that users or applications use to access the
space.
CASE 8-9 VMWARE STORAGE VMOTION
Despite the virtual nature of cloud-based storage, at some point, an
administrator, somewhere, must manage the physical data-storage devices. The
administrator may want to upgrade a device to a larger or faster drive, or, simply
move data for load balancing. Unfortunately, to perform such upgrades, an
administrator simply can’t call “time out” and take the device off line.
VMware’s Storage vMotion allows an administrator to move files from one
virtual data store to another while the virtual disk is active for use! If a user
updates a file on the source disk while the move is in progress, the Storage

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vMotion software simply takes note and then later updates the file on the target
disk.
Exercise Discuss application types for which a data storage device cannot be
taken offline in order to perform system updates.
Web Resources For additional information on VMware Storage vMotion, see
www.CloudBookContent.com/Chapter08/index.html.
Not All Applications Are Well Suited for Virtualization
Despite the performance utilization gains that most applications will experience
within a virtual environment, some applications are not well suited for
virtualization:
• Applications with unique hardware requirements: If an application
requires a unique device or hardware device driver, the virtualization software
may be unable to support the device.
• Graphics-intensive applications: If an application is graphics intensive, such
as a 3-D modeling program, the virtual device drivers may slow down the I/O
processing to an unacceptable level.
Why Virtualize?
Throughout this chapter, you have examined a variety of virtualization
techniques. The following list summarizes a company’s motivation to virtualize:
• Increased device utilization (particularly CPU utilization)
• Decreased device footprint
• Decreased power consumption
• Simplified operating system and application administration
• Ease of software provisioning and patch releases
• Device and storage scalability
• Increased user access to key resources
• Increased flexibility in supporting multiple operating system environments

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• Improved use and management of software licenses
• Improved utilization reporting, which leads to improved capacity planning
• Improved disaster recovery and business continuity
The primary disadvantages of virtualization include the following:
• New staff or staff training may be required to understand the virtualization
process.
• Not all applications are well suited for virtualization.
• The virtualization process adds slight overhead, which will make some
applications run more slowly.
CHAPTER SUMMARY
Virtualization is the use of hardware and software to create the perception that
one or more entities exist, although the entities, in actuality, are not physically
present. Using virtualization, we can make one server appear to be many, a
desktop computer appear to being running multiple operating systems
simultaneously, a network connection appear to exist, or a vast amount of disk
space or a vast number of drives to be available.
Through the use of server virtualization, companies reduce their server footprint
and power consumption, allow servers to support multiple operating systems,
and drive server CPU utilization. Further, through the use of desktop
virtualization, companies simplify operating system and application
administration. If needed, a virtual desktop can also run two or more operating
systems at the same time.
Virtualizing drives increases device utilization, simplifies device administration,
and improves business continuity and disaster recovery.
KEY TERMS
Guest operating system
Hypervisor
Virtual desktop

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Virtual private network (VPN)
Virtual server
CHAPTER REVIEW
1. Define and describe virtualization.
2. Defend the following statement: Virtualization is not a new concept within
computer science.
3. Describe the various types of virtualization.
4. List the pros and cons of virtualization.
5. Discuss the attributes of applications that are not well suited for virtualization.
6. List reasons why companies should virtualize.
7. List the benefits of blade servers.
8. Define and describe the hypervisor.
9. Define and describe green computing.
10. Describe the concept of the desktop on demand, and include the benefits of
such a system.
chapter 9
Securing the Cloud
FOR YEARS, IT DATA centers have been secured physically to prevent users
who do not have a need to physically touch computers, servers, and storage
devices from doing so. A general security rule is that if an individual can
physically touch a device, the individual can more easily break into the device. As
you might imagine, for many IT personnel the thought of hosting applications in
the cloud is very concerning. When you consider cloud security issues, you
should think in terms of two types of threats. Your first list of threats should
correspond to the threats common to both cloud-based and on-site solutions.
Your second list should focus on those concerns specific to the cloud.
Learning Objectives

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This chapter examines cloud-based security. By the time you finish this chapter,
you will be able to do the following:
• List the security advantages of using a cloud-based provider.
• List the security disadvantages of using a cloud-based provider.
• Describe common security threats to cloud-based environments.
General Security Advantages of Cloud-Based Solutions
As you have learned, because cloud-based solution providers spread their costs
across multiple customers, the providers benefit from their economies of
scale—meaning that most have more money available to invest in different
solutions, such as security issues. The following list specifies several advantages
cloud-based providers may have with respect to security:
• Immediate deployment of software patches: Many software patches
address specific security concerns and requirements. Most cloud-based solution
providers have a team of patch installation specialists who immediately deploy
system patches. In this way, the cloud-based systems may have a shorter period
of vulnerability after a software patch is released.
• Extended human-relations reach: Because of their financial strength,
cloud-based solution providers may be able to better vet potential employees
who will administer system software. Such vetting may include increased
reference checking, security and background checking, and periodic screening
(such as by polygraph).
• Hardware and software redundancy: Most cloud-based solution providers
have redundant hardware and software resources they can quickly deploy in an
emergency.
• Timeliness of incident response: Within a data center, key personnel often
perform multiple tasks. A company’s security specialist may also be the
company’s patch administrator. As a result, there are often delays between the
start of a security incident and its identification—which may have a catastrophic
result. A cloud-based solution provider, in contrast, likely has experts monitoring
systems for intrusion, system utilization, and more. In this way, should a security
incident occur, the cloud-based solution provider is likely to be more responsive.
• Specialists instead of personnel: Again, because of their financial advantage,
cloud-based solution providers may be better positioned to recruit and hire
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other hand, may have a one-person IT staff—and that employee may have a
steep learning curve.
There are also security disadvantages to hosting applications and their data
within the cloud:
• Country or jurisdiction: It is not always clear where cloud-based resources
reside. If a cloud hosts its resources within a remote country, for example, one
must be concerned with the laws and the government stability of the country. If
the cloud resources reside in multiple states, questions of jurisdiction may arise
in the event of a legal matter. If a cloud-based provider, for example, receives a
subpoena or a request for an e-discovery process, a customer’s data may become
part of, and exposed to, an unwanted legal discovery.
• Multitenant risks: Many cloud-based solution providers use multitenant
solutions, which means that two or more customers may use the same resources,
such as a database. As a result, an application error might expose one company’s
data to another company. Likewise, if a data storage device is shared, data
remnants from one company may be exposed to another company.
• Malicious insiders: Despite a cloud solution provider’s best human-relations
efforts, there can sometimes be problems with malicious employees. Depending
on the employee’s role, a company’s cloud-based data may be at risk.
• Vendor lock in: Depending on how a cloud-based solution provider stores a
company’s data, it may become difficult for the company to change providers
later in the event of a service-level agreement breach or other problem.
• Risk of the cloud-based provider failing: Companies who rely on
cloud-based providers are at risk that the provider could fail. Some companies
ask for a source code escrow agreement, which places a copy of the provider’s
source code with a third-party company. If the provider fails, the company can
gain access to the source code, with which they may be able to rehost the
solution.
CASE 9-1 MCAFEE SECURITY AS A SERVICE
To stay current with virus and spyware threats, most antivirus solutions
perform constant updates to their virus signature dictionary/database. When
you license an antivirus solution, you normally receive at least one year of
automatic security system updates. As you work, the antivirus software updates
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software, as shown in FIGURE 9-1, pulls in the threat signatures from across the
cloud.
McAfee now offers a range of security solutions that deploy from the cloud. The
solutions protect e-mail (spam, phishing, redirection, and virus elimination),
websites, desktop computers, mobile devices, and more. FIGURE 9-2 shows the
McAfee security as a service web page.
Exercise Assume that you must provide desktop antivirus and antispam support
for 1,000 desktop computers. Visit the McAfee website and create a proposal that
includes your solution features and cost.
Web Resources For additional information on McAfee security as a service, see
www.CloudBookContent.com/Chapter09/index.html.

FIGURE 9-1 Antivirus systems retrieve cloud-based updates regarding new
threats in near real time.

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FIGURE 9-2 McAfee, like many security providers, now offers a range of
cloud-based security solutions.
Introducing Business Continuity and Disaster Recovery
Chapter 10, Disaster Recovery and Business Continuity and the Cloud, examines
business continuity and disaster recovery in detail. Within Chapter 10, you will
learn that companies always face a variety of risks. Each company’s goal is to
evaluate the risks and to determine ways to mitigate (reduce) them. When you
work with security issues, the same technique applies. To start, you must
determine where your system is vulnerable and then you must take steps to
reduce the vulnerability. The following sections examine common security
threats.
Understanding Data Storage Wiping
In Chapter 6, Data Storage in the Cloud, you learned that many facilities offer
cloud-based storage. Often a cloud-based data storage provider may share a
storage device across multiple customers. Assume, for example, that you store a
confidential company document within the cloud. Later you delete that
document. Normally, when the file system deletes a file on disk, the file system
simply marks the locations within which the file resided as available for use to
store other files. Assume that another customer comes along and allocates space
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customer examines the allocated space, the customer may have access to your
previously deleted confidential document!
To prevent such inadvertent data access, many cloud-based data storage facilities
will wipe a file’s contents upon deletion. Data wiping is the term used when a
cloud-based storage device overwrites (wipes) a file’s contents when a file is
deleted. Wiping involves overwriting the previous file space with a series of
values. In this way, as shown in FIGURE 9-3, if a customer allocates space within a
cloud-based disk, that customer cannot read the disk’s previous content.

FIGURE 9-3 Within a cloud-based disk storage facility, file wiping overwrites a
file’s previous contents when the file is deleted.
Understanding Distributed Denial-of-Service (DDoS) Attacks
A denial-of-service attack is a hacker attack on a site, the goal of which is to
consume system resources so that the resources cannot be used by the site’s
users. The motivation for and the implementation of denial-of-service attacks
differ. The following batch file, for example, repeatedly sends ping requests to a
specified website. Because the site must respond to the requests, it may need to
deny or delay service to other users:
:Loop
ping SomeSite.com

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GOTO Loop
A distributed denial-of-service (DDoS) attack uses multiple computers
distributed across the Internet to attack a target site, as shown in FIGURE 9-4.
It can be challenging for a server to defend itself against a denial-of-service
attack. Often a server slows down considerably before the attack can be detected
and defended. The advantage of a cloud-based host with respect to a
denial-of-service attack is that the cloud server may scale its resources quickly to
respond to the attack messages in such a way that the site’s users are not
impacted. The increased scaling will notify the administrators that the site is
under attack so they can initiate defensive actions.
Packet Sniffing
Across the Internet and cloud, applications communicate by exchanging packets
of data. As shown in FIGURE 9-5, within a wired network each computer examines
packets to determine which ones are addressed to it.

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FIGURE 9-5 Network applications communicate by exchanging network packets.
Each computer within a wired network examines the message address to
determine if the message is for an application it is running.
A hacker can write code that lets his or her system examine the content of each
packet that travels past it. Such programs, called packet sniffers, allow the hacker
to view, and in some cases change, a packet’s contents. Within a wireless
network, hackers can simply monitor the airways to intercept packets.
The best defense against a packet sniffing attack is to use secure (encrypted)
connections. The cloud, because it allows users to connect to applications from
anywhere, increases potential risks. Users may connect from an insecure
network or a network in which the wireless traffic is being monitored. To reduce
the threat of such attacks, more cloud-based applications will require secure
connections in the future.
Man-in-the-Middle Attack
A man-in-the-middle attack is much as it sounds. In general, the attack occurs
when a hacker, as shown in FIGURE 9-6, is able to interrupt network messages
and essentially place himself or herself between the user and the remote system.
When the hacker is positioned in this way, he or she can then then send
messages that appear to come from either the user or the system, as needed.

FIGURE 9-6 Within a man-in-the-middle attack, a hacker intercepts the
messages a user and system are exchanging. The hacker can view and/or change
the message contents.
Because cloud-based solutions rely on user communications across the Internet,
the solutions are at risk for man-in-the-middle attacks. A good defense against

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such attacks is to establish a secure (encrypted) connection with the remote
server.
Monitoring Device Screens
Years ago, when employees accessed sensitive or confidential data only from
within their office, the physical data were better protected from prying eyes. The
cloud, however, extends the delivery of such data to users who are any place, at
any time, and often to any device. The net result is that within a busy coffee shop
or an airport, strangers can see data ranging from human-relations information
or customer sales data to student grades, and more.
Unfortunately, the problems caused by remote data access will only get worse.
The best defense against screen monitoring is user training. Users who access
sensitive data must be aware of their surroundings.
Malicious Employees
Companies spend considerable amounts of money trying to protect their data
and communications from hackers. IT staffs deploy firewalls, use encryption,
monitor network traffic for intrusion, and much more. With all of these security
features in place, the most difficult challenge for a company to defend itself
against is a malicious employee. Developers, for example, have access to
databases, and IT staff members have access to various system passwords, which
means that each may have access to human-relations data, payroll data, e-mail
content, and so on.
By shifting data to the cloud, you move sensitive data away from your own
employees. However, the data are now accessible to a staff of IT personnel that
you do not know. For many data items, such as payroll data, the cloud-based staff
is likely less interested and curious about the data. That said, companies must
feel confident that the data they store within the cloud are secure. To meet these
concerns, cloud-based solution providers are intensifying their recruitment and
hiring processes.
Hypervisor Attack
Chapter 8, Virtualization, introduced you to the concept of server virtualization.
As you learned, when you virtualize a server, each server operating system runs
on top of special virtualization software called the hypervisor, as shown in FIGURE
9-7.

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As you might imagine, hypervisor developers such as VMware and Microsoft
constantly focus on ways to lock down and secure the hypervisor to reduce risks.
That said, the hypervisor will remain an attractive hacker target as companies
continue to virtualize solutions. Hackers refer to the process of taking over the
hypervisor as a hyperjacking attack. In the future, to reduce the chance of a
hypervisor being taken over by malicious code, the underlying hardware may
assign a state value, like a cyclic redundancy check (CRC), to the hypervisor. If
this value changes, the hardware can detect that the hypervisor has been
attacked or replaced.

FIGURE 9-7 The hypervisor is special software that allows virtualization of
system resources.
Guest-Hopping Attack
Within a virtualized server, the operating systems that execute are called guest
operating systems. Assume, as shown in FIGURE 9-8, that a virtual server is
running three operating systems and a hacker is trying to attack operating
system A.
If the hacker is unable to directly attack operating system A, the hacker may then
try to attack operating system B. If the hacker is successful, the hacker may then
initiate a peer-level attack on operating system A, as shown in FIGURE 9-9.
Hackers refer to an attack from one guest operating system to another as a
guest-hopping attack.

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FIGURE 9-8 A virtualized server running three guest operating systems with a
hacker trying to attack operating system A.

FIGURE 9-9 A guest-hopping attack occurs when a hacker tries to attack one
guest operating system from another.
CASE 9-2 CLOUD SECURITY ALLIANCE
The Cloud Security Alliance is a not-for-profit organization, the goal of which is
to promote education of cloud security issues. The Cloud Security Alliance
consists of a large coalition of cloud practitioners, companies, associations, and
other cloud stakeholders. As shown in FIGURE 9-10, the Cloud Security Alliance
offers training that can lead to a Certificate of Cloud Security Knowledge.
Exercise Visit the Cloud Security Alliance website. Produce a list of cloud
security topics one should understand in preparation for taking the cloud
knowledge certification exam.

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Web Resources For additional information on the Cloud Security Alliance, see
www.CloudBookContent.com/Chapter09/index.html.

FIGURE 9-10 The Cloud Security Alliance offers training and certification in
cloud security knowledge.
SQL-Injection Attack
Many web applications present forms that users must complete by filling in fields
and then submitting the form contents for processing. The application that
receives the form data often stores the data within an SQL database. An
SQL-injection attack occurs when a malicious user inserts one or more SQL
queries within one or more of the fields. For example, rather than simply typing
in his or her last name, the hacker might type the following:
Smith; DROP DATABASE EMPLOYEES;
Depending on how the database uses the user input, the processing may result in
the execution of the injected SQL, which in this case would delete the database of
the company’s employees. When developers prompt users to enter data within
forms, the developers must be aware of and test for such injections.
CASE 9-3 EUROPEAN NETWORK AND INFORMATION SECURITY AGENCY
(ENISA)

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The European Network and Information Security Agency (ENISA), based in
Greece, promotes cybersecurity best practices. Within the ENISA website, you
will find a broad range of papers and reports on a variety of security topics.
FIGURE 9-11, for example, illustrates the ENISA Cloud Computing Risk
Assessment page which you should read.
Exercise Visit the ENISA website and review the Cloud Computing Risk
Assessment page and document. Create a two- to three-page executive summary
that describes the risk assessment overview.
Web Resources For additional information on ENISA security
recommendations, see www.CloudBookContent.com/Chapter09/index.html.

FIGURE 9-11 The ENISA website provides a wide range of cybersecurity best
practices, including recommendations for secure cloud computing.
Many cloud-based SaaS solutions are multitenant applications, which means
different customers may share underlying resources such as a database. If the
SaaS application falls victim to SQL injection, it might be possible for a user in
one company to view, change, or destroy the data of another company.
Physical Security
In Chapter 10, Disaster Recovery and Business Continuity and the Cloud, you will
examine a variety of system threats, including fire, flood, theft, earthquakes,

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tornadoes, hurricanes, and power outages. A cloud-based solution provider, like
all data center facilities, is subject to each of these threats. Most, however, reduce
the risk of such threats by replicating (colocating) identical systems at
geographically dispersed locations, as shown in FIGURE 9-12.
If one system fails, the service provider can immediately fail over to the other
system. Further, because most cloud service providers have state-of-the-art data
centers, they normally have fire suppression systems, backup as power
generators, and strong physical security measures in place.

FIGURE 9-12 By using colocated, replicated hardware and software, cloud
solution providers reduce many threats to IT resources.
CHAPTER SUMMARY
For years, IT data centers physically secured resources to prevent users who do
not have a need to physically touch computers, servers, and storage devices from
doing so. IT security professionals know that anyone who can physically touch a
device can more easily break into it, and so much of IT security is based on
preventing access. The cloud, however, changes the security model significantly
by making data available to users anywhere, anytime, with virtually any device.
Securing cloud-based applications takes planning and resources. As you examine
cloud security issues, think in terms of two types of threats: those that are

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common to both cloud-based and on-site solutions, and threats that are specific
to the cloud.
KEY TERMS
Data wiping
Denial-of-service attack
Guest-hopping attack
Hyperjacking attack
Man-in-the-middle attack
Packet sniffing
SQL-injection attack
CHAPTER REVIEW
1. List the security advantages of cloud-based solutions.
2. List the security disadvantages of cloud-based solutions.
3. Define and discuss the data wiping process.
4. Discuss how a cloud-based solution provider may reduce the risk of a DDoS
attack.
5. Define and discuss hyperjacking attacks.
6. Define and discuss guest-hopping attacks.
• Copy
• Add Highlight
• Add Note
chapter 10
Disaster Recovery and Business Continuity
and the Cloud

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FOR YEARS, A PRIMARY job of the IT staff of an organization was to ensure
availability of computing resources (applications, files, and even phone systems)
not only on a day-to-day basis, but also in the event of a crisis or natural disaster.
Business continuity describes the policies, procedures, and actions taken by an
organization to ensure the availability of critical business functions to
employees, customers, and other key stakeholders. Disaster recovery describes
the steps a business will take to restore operations in the event of a disaster (fire,
flood, hurricane, tornado, or other event). Following 9/11, business continuity
and disaster recovery became a very real and essential IT function.
Learning Objectives
This chapter examines ways companies can leverage the cloud to increase
business continuity and to simplify disaster recovery. By the time you finish this
chapter, you will be able to do the following:
• Define and describe business continuity.
• Define and describe disaster recovery.
• Describe the benefits of cloud-based or off-site backups.
• Evaluate the risk of various threats and discuss steps to mitigate each.
• Discuss the role of colocation as a business continuity and disaster recovery
solution.
• Identify and discuss a variety of system threats.
• Describe the benefits of a cloud-based phone system.
• Describe the benefit of cloud-based data storage to business continuity.
• Describe the importance of testing/auditing the business continuity and
disaster recovery plan.
• Create a business continuity and disaster recovery plan.
Understanding the Threats
An IT staff must anticipate and prepare for a wide range of system threats. The
following sections examine common threats, how IT teams traditionally tried to
mitigate threat risks, and how cloud-based solutions may further mitigate risks.
Threat: Disk Failure

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Disk drives are mechanical devices, and as such they will eventually wear out and
fail. Further, other threats, such as fire, flood, theft, or power surges, can result in
the loss of disk-based data.
All mechanical devices have an associated mean time between failure (MTBF)
rating. For a disk drive, the MTBF may be 500,000 hours of use (about 8 years).
That said, it is important that you understand how manufacturers calculate the
MTBF. To start, the manufacturer may begin running 1,000 disk drives. When the
first disk drive fails, the manufacturer will note the time—let’s say after 500
hours (less than a month). The manufacturers then multiply that time by the
number of devices that they tested to determine the MTBF:
MTBF = (500) × (1000)
= 500,000 hours
It’s important to note that no device in the group ran near the 500,000 hours!
Traditional Risk Mitigation for Disk Failure
The first and foremost risk mitigation for disk failure is to have up-to-date disk
backups. If a disk fails, the company can simply replace the disk and restore the
backup. That implies, of course, that the cause of the disk failure (fire, smoke,
flood, or theft) did not also damage the disk backup. To reduce such risk, most
companies store their disk backups at an off-site storage facility.
CASE 10-1 IRON MOUNTAIN OFF-SITE TAPE VAULTING
Because of their ease of use, inexpensive cost, and high storage capacity, many
companies continue to use tape backups for their disk storage. A lot of companies
use Iron Mountain to store the tape backups securely. If the company ever needs
to restore a disk or retrieve an archived letter, e-mail, or other data for legal or
compliance reasons, the company can simply retrieve and restore the magnetic
tape. The question then becomes, why use Iron Mountain? The answer is simple:
they have been storing key company data since 1951!
Today Iron Mountain provides a variety of services beyond digital tape storage:
• Document management
• Cloud-based automatic backups
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• Secure document shredding
• And more
Exercise Assume your company must back up 500 users’ desktops and 20
physical servers. Visit the Iron Mountain website and create two backup plan
options.
Web Resources For additional information on Iron Mountain and the company’s
backup solutions, see www.CloudBookContent.com/Chapter10/index.html.
The problem with the remote tape backup system is that it takes time. To start,
the company may need to purchase a replacement disk. Then the company must
install and format the disk for use. Finally the company’s tape storage facility
must locate and return the tape that contains the data.
To reduce the potential need to retrieve and store a tape backup, companies
turned to multiple disk storage solutions.
RAID-Protected Storage Today, many data centers use a redundant array of
independent (or inexpensive) disks (RAID) to reduce the impact of disk
failure. A RAID system contains multiple disk drives. Rather than simply store a
file on one drive, the RAID system stores the data across several drives. In
addition, the RAID system stores data that can be used to reconstruct the file if
one of the drives fail. In this way, if a disk drive fails, no file recovery is required
from the tape backup. Instead, the IT staff can simply replace the failed disk and
the RAID system will rebuild the disk’s contents on the fly!
It is important to note that RAID systems do not eliminate the need for disk
backups. If fire, flood, or theft occurs, the entire contents of all the RAID drives
may be lost. In such a case, the tape backup of the drives becomes the data
restoration solution.
Cloud-Based Data Storage and Backup Solutions
Chapter 6 examined cloud-based data storage in detail. As you learned,
cloud-based storage not only lets users access their data from any place, at any
time, and often with any device, but it also provides enhanced data replication.
As shown in FIGURE 10-1, many cloud-based data storage systems automatically
replicate cloud-based data at a second off-site, cloud-based facility. In this way, if
one of the RAID-based cloud devices fail, the cloud-based data provider can
immediately fail over to the redundant device.

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FIGURE 10-1 Most cloud-based data storage facilities provide automatic data
replication to another cloud-based data repository.
Further, as discussed in Chapter 6, many cloud-based facilities now use a
RAID-like file system, which produces recovery data the facility can use in the
event of a device failure.
Cloud-Based Data Backups
Chapter 6 examined the role of cloud-based backups in detail. Because
cloud-based backups reside at a remote storage facility, the backups immediately
introduce a level of protection. Then, because the backup files are immediately
available from any device, anywhere, the backups reduce potential downtime
because no time is needed to find, retrieve, and restore a tape backup from a
traditional backup storage facility.
Threat: Power Failure or Disruption
Computers are sensitive electronic devices. When a computer loses power, the
user’s current unsaved data is lost. Further, an electrical spike can permanently
damage the computer’s electronic components, rendering the device unusable or
destroying disk-based data. Although power blackouts can be caused by storms,
accidents, or acts of terrorism, the more common power brownout is typically
more damaging. And, unfortunately, power brownouts can be quite common,
especially in the hot summer months when electrical demands spike.
Traditional Power Loss Risk Mitigation
To reduce the risk of an electrical surge damaging a computer and its
peripherals, most users plug their computers and devices into a surge
suppressor. Although the surge suppressor can prevent damaging power spikes

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from reaching the computer’s electronic components, the surge suppressor
cannot help against power loss. If a power loss occurs, the user’s unsaved work
will be lost.

FIGURE 10-2 Users plug devices into surge suppressors to protect the devices
from power spikes. A UPS provides users with a few minutes of battery backup
power so the users can save their work and shut down their systems in an
orderly way.
To reduce the risk of lost work, many users plug their devices into an
uninterruptible power supply (UPS). Most UPS devices provide 10 to 15
minutes of battery backup power, which gives users time to save their work and
shut down their systems in a conventional way. FIGURE 10-2 shows a surge
suppressor and a UPS.
Within a data center, as you can imagine, it would be physically impossible to
plug every device into its own UPS. Further, within a data center, a loss of power
also means a loss of critical air conditioning to cool the computer devices. To
mitigate risks from power loss, some data centers use very large UPS-like devices
that provide a period of battery power to all of the powered devices. Further, as
shown in FIGURE 10-3, if the power outage lasts a long time, the data center can
switch to a large diesel-powered generator to drive power.

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FIGURE 10-3 Many data centers have diesel-powered generators to produce
power in the event of a long-term outage.
Colocation of Data Resources Colocation is the process of replicating key data
processing, data storage, and possibly telecommunications equipment at a
second remote facility. In other words, a company will duplicate its data center at
a second facility. The advantage of colocation is that if one data center fails, the
system can immediately fail over to the second facility. The disadvantage of
colocation is cost. Not only does the company have to replicate its equipment, but
it must also pay for the power, air conditioning, and staffing for a second facility.
Colocation is one way to reduce the risk of power failure. It is not enough to
simply locate the second facility across the street or even across town. One must
place the second facility across the country to eliminate the impact of storms,
attacks, or power grid failures.
Cloud-Based Power Loss Risk Mitigation
Chapter 3, Platform as a Service (PaaS), introduced the concept of cloud-based
PaaS solutions. Likewise, Chapter 4, Infrastructure as a Service (IaaS), presented
the concept of cloud-based IaaS solutions. When you consider the expensive
infrastructure needed to reduce the impact of power interruption, that alone
should make you consider housing the data center off-site within the cloud. Most
PaaS and IaaS solution providers have effectively dealt with power loss issues.

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Remember, such providers can share the infrastructure costs across many
customers. Also, most of the providers have colocated facilities on different
power grids.
CASE 10-2 SITE SECURE NET | THE PLANET
Many companies today provide cloud-based PaaS and IaaS solutions with
excellent power management facilities. Site Secure Net | The Planet is one such
company, featured here because its website, shown in FIGURE 10-4, specifically
addresses the company’s power management infrastructure. Beyond a
state-of-the-art power management system, Site Secure Net | The Planet also
provides colocation support. If power fails in one facility, the second facility can
immediately take over operations.
Exercise Assume that your company has an in-house data center and 500 on-site
user computers. Discuss the steps you would recommend that the company
pursue to provide power management to the computer resources.
Web Resources For additional information on Site Secure Net | The Planet, see
www.CloudBookContent.com/Chapter10/index.html.

FIGURE 10-4 The Site Secure Net | The Planet website provides an excellent
power management overview.
Threat: Computer Viruses

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As users surf the web (potentially downloading and installing software) and
share drives (such as junk drives), their systems and those in the same network
are at risk for a computer virus attack or spyware. It is estimated that within the
United States alone, lost productivity time due to computer viruses exceeds $10
billion per year!
Traditional Computer Virus Risk Mitigation
The best defense against computer viruses and spyware is to ensure that every
system has antivirus software installed. Most antivirus solutions today
automatically update themselves across the web, as often as daily, with the most
recent virus and spyware signatures.
Second, many organizations prevent users from installing their own software.
Not only does this practice reduce the chance of a computer virus infection, it
also aids the company in preventing the installation of software that the
company does not own.
Third, as shown in FIGURE 10-5, home users should enable a firewall on their
system, either at their router or on the computer itself. Most companies place a
firewall outside the network.

FIGURE 10-5 Home computer users and business users should protect their
systems by placing a firewall between the systems and the Internet.
Fourth, companies must train users to not open e-mail attachments in messages
they receive from users they do not know.
Cloud-Based Computer Virus Risk Mitigation
In Chapter 8, Virtualization, you learned that many companies now virtualize
desktop systems and, in some cases, download an operating system image on
demand. A side effect of this virtualization process is a reduced opportunity for a
computer virus to make its home within a user’s desktop environment. Further,
as you learned in Chapter 9, Securing the Cloud, many companies are moving to
cloud-based antivirus solutions.

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Threat: Fire
Fire can damage computer resources, data stored on disks, and local copies of
system backups. If the fire itself does not damage the equipment, the smoke or
the process of putting out the fire will.
Traditional Fire Risk Management
Most offices have sprinkler systems, which, as you can imagine, destroy
computers when they deploy. Often there is no good way to protect office
hardware other than simply to insure it. The goal, when such damage occurs, is
to get the users up and running again as soon as possible—business continuity,
in other words. That means that system backups must be up to date and must be
stored at an off-site location.
Within a data center, you normally won’t find sprinkler systems, but rather
halon systems, based on compounds of carbon and one or more halogens, that
stop fire by removing all the oxygen from the room.
Cloud-Based Fire Risk Mitigation
If you house your data center in the cloud, your system will reside in a
state-of-the-art data center that provides fire suppression systems and, in most
cases, colocated system redundancy. Again, because the PaaS and IaaS solution
providers share their costs across many customers, they are able to provide their
customers with top-level service at a relatively low cost.
Threat: Floods
During the rainy season, the nightly news often leads with a story about a city or
state that is under water due to flooding. Depending on the speed and severity of
the flood, companies may have a chance to remove systems from the area before
the flood hits. If not, the equipment and the data stored within it is typically lost.
Traditional Flood Risk Mitigation
As with fire, so with flood: the best defense is to have current backups and
insured equipment. Within many data centers you will find flood sensors, similar
to the one shown in FIGURE 10-6, which sound an alarm if water is detected.
These sensors do not exist to detect widespread flooding, but rather water
leaking from an on-site pipe break.

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FIGURE 10-6 Many data centers use water detection systems to sound alarms if
a pipe breaks.
Cloud-Based Flood Risk Mitigation
A good rule of thumb is to not place your data center within a flood zone.
Historically, most companies had little choice—they had to place their data
center near their business offices, often in the same building. Today, however,
with cloud-based PaaS and IaaS solutions readily available, the data center can
essentially reside anywhere. Thus, the new rule of thumb is to not select a PaaS
or IaaS provider located in a flood zone.
Threat: Disgruntled Employees
A disgruntled employee can harm a company by launching a computer virus,
changing or deleting files, or exposing system passwords. It is very difficult to
defend completely against a disgruntled employee, particularly one who has
physical access to systems.
Traditional Disgruntled Employee Risk Mitigation
In the past, businesses protected themselves from disgruntled employees by
trying to limit the damage such an employee could cause. First, as previously
discussed, companies must ensure that up-to-date backups are in place. Second,
the company must use controls to limit the resources that employees can access
to only those they need in order to perform their jobs. Then, if an employee is
terminated, the company must quickly disable the employee’s access to all
systems.
Cloud-Based Disgruntled Employee Risk Mitigation

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Chapter 5, Identity as a Service (IDaaS), presented the single sign-on process and
ways companies are using the cloud to implement IDaaS. In this way, if a
company terminates an employee, the company can quickly disable the
employee’s access to all systems by simply disabling the employee within the
authentication server. Chapter 8, Virtualization, examined desktop virtualization.
If a company provides employees with a desktop on demand, most employees
(except for the one in charge of desktop images) can do little to harm the system.
Threat: Lost Equipment
Each year, within airports alone, thousands of notebook computers are lost or
stolen. When an employee loses a notebook, not only is the computer lost, but
also the user’s local data, which may be confidential. Today, with users carrying
powerful handheld devices, the opportunity for loss becomes even greater. Given
the amount of information a user stores on such a device, identity theft often
follows the theft of a device.
Traditional Lost Equipment Risk Mitigation
To reduce the risk of data loss when a device is lost or stolen (or broken), the
user must maintain current backups. To reduce access to company sensitive data,
many systems require a username and password or biometric sign-on. Although
such techniques can be bypassed by an advanced hacker, they will prevent most
criminals from accessing data.
Cloud-Based Lost Equipment Risk Mitigation
Typically, the more a company utilizes the cloud, the less risk the company will
have with respect to a lost device. If, for example, the user stores (or syncs) key
files to a cloud-based data repository, the user is likely to lose only minimal data.
Likewise, if the company uses a cloud-based system such as Exchange Online, the
user will be without e-mail, calendar, and contact access for only a brief period of
time.
Threat: Desktop Failure
Computers, like all devices, may eventually wear out and fail. The cause of failure
may be a bad disk drive, motherboard, power supply, and so on. The bottom line
is that a user is now without a system.
Traditional Desktop Failure Risk Mitigation
The first step in recovering from a desktop failure is to ensure that current
backups of the user’s files exist. Many companies have users store key files on a

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network disk, which the company can easily back up and later restore. In most
companies, a user experiencing the desktop failure will be offline until the IT
staff can locate a replacement computer, install and configure software, restore
backups of any of the user’s local files, and then make the system available. A few
hours of employee downtime can have a significant cost.
Cloud-Based Desktop Failure Risk Mitigation
Chapter 8, Virtualization, examined desktop virtualization. If a company delivers
the users’ desktops on demand, a user whose system has failed need only stand
up, walk to another system, and log in. The employee can then resume work right
where he or she left off. Further, if the user stores files in the cloud, he or she can
likely access them from any device, and, if necessary, use software such as Office
Web Apps to access and edit the files.
Threat: Server Failure
Just as desktop computers can fail, so too can servers. Because most servers
today are blade devices, replacing a server is a relatively simple process, as
shown in FIGURE 10-7, as long as the company has an extra server available.
Because most servers boot from a network-attached storage (NAS) device, the
process of getting the new server up and running should be easy.

FIGURE 10-7 Blade server replacement is normally fast and simple. Because
most servers boot from a NAS device, only minimal software setup is normally
required.
Traditional Server Failure Risk Mitigation
If a company has a mission-critical application running on a lone server and does
not have a replacement server available, or better yet, online, then shame on that
company. Device redundancy is the only way to recover quickly from a server
failure.

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Cloud-Based Server Failure Risk Mitigation
Given not only the cost factors, but also the advantages discussed throughout this
chapter, most server applications should reside in the cloud with a PaaS or IaaS
solution provider. Such providers typically provide 99.9 percent uptime through
hardware redundancy and automatic failover.
Threat: Network Failure
Although networks consist primarily of cables and simple switching devices,
things can break. For simple networks, the network will remain down until the
faulty device or cable is identified and replaced.
Traditional Network Failure Risk Mitigation
For home computer users, when a network fails, users are going to be offline
until a fix is applied. If the problem resides within the Internet service provider
(ISP), the user can do nothing to resolve the issue. As a solution, some users are
purchasing 3G and 4G wireless hotspot devices as a backup method of accessing
the Internet.
To make sure that the network does not become a single point of failure, some
companies bring in a second Internet source from a vendor other than their
primary ISP. In this way, if one network provider fails, the company can gain
access to the Internet through the backup network. Further, given that the
backup network is in place, many companies will use it to load balance their
bandwidth demands.
Cloud-Based Network Failure Mitigation
At first consideration, relying on the cloud for application and data storage may
make the thought of a network failure quite concerning. However, as you have
just read, to reduce the risk of network failure many companies provide
redundant network connections to the Internet. The same is true for cloud
service providers. Again, most will guarantee 99.9 percent uptime.
Threat: Database System Failure
Most companies today rely on database management systems to store a wide
range of data, from customer data, to human resources data, to
application-specific data. If a company’s database fails, many applications may
also fail.
Traditional Database System Failure Risk Mitigation

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The first defense in reducing the risk of database failure is to maintain current
backups of the database. Most database systems today make the backup process
easy and automatic. If the database fails, the IT staff can restore the backup.
Unfortunately, the database and the applications that rely on it will be down
while the restoration is performed.
To reduce the risk of database downtime as a result of a database failure,
companies typically replicate data across two database systems in real time.
When an operation updates data within the database, the database replication
software will immediately update both database systems, as shown in FIGURE
10-8.

FIGURE 10-8 Database replication creates two live copies of databases on
separate servers. If one database fails, the other can immediately take over
operations.
Cloud-Based Database System Failure Risk Mitigation
As you just learned, to reduce potential system downtime in the event of a
database system failure, many companies replicate the database contents in real
time. The disadvantage of database replication is that it requires two servers
(ideally in different locations) and may be complicated for developers to initially
configure.
Chapter 6, Data Storage in the Cloud, discussed cloud-based database
management systems in detail. As you learned, most cloud-based database

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storage providers use transparent database replication. If a database in the cloud
fails, the system will fail over to the backup database automatically. Further,
because replication can occur in both directions, the system can use the second
database for load balancing. If data is updated in either system, the change will
be replicated to the other system.
Threat: Phone System Failure
Despite the fact that virtually all employees carry a cell phone today, most
organizations still maintain phone systems that provide voice mail, conference
calling, and call forwarding. If the phone system fails, the company can resort to
cell phones. Unfortunately, customers calling in to the company would not know
which numbers to call.
Traditional Phone System Failure Risk Mitigation
Historically, there have been few ways outside of redundancy to reduce the
impact of a phone system failure. That was the case until the advent of
cloud-based phone systems.
Cloud-Based Phone System Failure Risk Mitigation
To avoid a single point of failure for phone systems, cloud-based phone systems
have now emerged. The cloud-based systems provide the functionality of a
traditional phone system and, behind the scenes, provide system replication.
CASE 10-3 RINGCENTRAL CLOUD-BASED PHONE SYSTEM
RingCentral is a cloud-based phone system provider. It offers a cost-effective
phone system solution. Features of RingCentral include the following:
• Free nationwide calling and faxing
• Support for existing phones and faxes as well as RingCentral IP phones
• Lets users place calls from any phone, anywhere, while appearing to be made
from the usual office number
• Caller greetings customized by the time of day
• Fully customizable call forwarding
• Forwarding of voice mail and faxes to e-mail
• A phone directory system that helps callers locate personnel

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• Ability to let companies deliver music or corporate messaging to callers who
are on hold
FIGURE 10-9 presents the RingCentral website.
Exercise Discuss the pros and cons of using a cloud-based phone system
provider.
Web Resources For additional information on RingCentral and the company’s
phone system solutions, see
www.CloudBookContent.com/Chapter10/index.html.

FIGURE 10-9 RingCentral offers a fully functional cloud-based phone system.
Understanding Service-Level Agreements
When you sign a service agreement with a cloud-based solution provider, your
agreement will normally contain a clause called a service-level agreement
(SLA). The SLA defines the level of service that the cloud-based company must
provide. Common components of an SLA include MTBF, uptime percentage,

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throughput, and other performance benchmarks. Before you enter into an
agreement, pay close attention to the details of the SLA.
Measuring Business Impact: The Essence of Risk Mitigation
Often the process of reducing risk will bring with it some sort of cost, perhaps for
backups, system redundancy, and so on. As a result, a business cannot always
eliminate all technology risks. Instead, the IT staff must evaluate which risks are
most likely and which risks have the greatest potential impact on the company
and its ability to continue operations. The risk mitigation process requires that
the IT staff balance risks and potential impacts.
To start the risk mitigation process, make a list of the company’s potential
technology risks. Then estimate each risk’s potential for occurrence and its
business continuity impact, as shown in TABLE 10-1.
You may want to add a column that estimates the cost to reduce the risk. In this
way, you can provide management with the key factors they should consider as
they invest in resources to reduce the company’s technology risks.
TABLE 10-1 RISK OCCURRENCE PROBABILITY AND BUSINESS CONTINUITY
IMPACT
Risk Occurrence Probability Business Continuity Impact

User disk failure Medium Low

Server disk failure Low High

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Network failure Low High

Database failure Medium High

Phone system failure Low Medium

Server power failure High High

Desktop power failure High Low

Desktop failure Low Low

Fire Low High

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Flood Low High

Disaster Recovery Plan Template
Companies should have a disaster recovery plan (DRP) in place that details
their planned operations. To get started with a DRP, you can use the following
template as a guide.
COMPANY NAME: BUSSINESS CONTINUITY AND DISASTER RECOVERY PLAN
PLAN OVERVIEW
Company Name is taking steps to provide risk mitigation, business continuity,
and disaster recovery for its information technology and communications
infrastructure. The following sections detail the operational plan and
recommend responsible parties. When possible, the plan sections provide
detailed contact information for the plan’s responsible parties and stakeholders.
This plan is CONFIDENTIAL and is the property of Company Name.
PLAN GOALS AND OBJECTIVES
The goals of this business continuity and disaster recovery plan include the
following:
• To ensure the safety of all Company Name employees
• To provide the ability to resume key business operations quickly and safely
within the shortest possible amount of time following a disaster or business
interruption
• To mitigate the impact of a disaster to Company Name stakeholders
• To reduce confusion with respect to operational steps and responsibility in the
event of a disaster
DISASTER OR EVENT CATEGORIZATION
The Company Name recovery plan addresses three types of disaster or business
interruption events:

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• Short term: A day or less
• Medium term: A month or less
• Long term: A month or more, with the possible relocation of employees and
facilities
DISASTER RECOVERY TEAM
Company Name has assigned the following key personnel to the disaster recovery
team:
EMERGENCY CONTACT INFORMRATION

RISK IDENTIFICATION
Tornado Hurricane Flood
Hail Earthquake Fire
Power failure (server, desktop) Phone system Database failure
Disk (server, desktop) Theft Disgruntled employee
Virus Network failure System failure (desktop, server)
RISK ANALYSIS

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Risk Occurrence Probability Business Continuity Impact
User disk failure Medium Low
Server disk failure Low High
Network failure Low High
Database failure Low High
Phone system failure Low Medium
Server power failure High High
Desktop power failure High Low
Fire Low High
Flood Low High
Virus High High
RISK MITIGATION
Risk Mitigation
User disk Company Name will back up user disks to the Carbonite cloud-based backup

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failure system.
Server disk
failure
Company Name will use RAID systems for all servers and will back up the
server disks to the Carbonite cloud-based backup system.
Network
failure
Company Name will bring two Internet providers into each facility and load
balance the network traffic across the shared bandwidth.
Database
failure
Company Name will replicate its existing database system to a remote database
that resides in the cloud and will implement an automatic failover.
Phone
system
failure
Company Name will tie all company cell phones to the RingCentral cloud-based
phone system.
Server
power
failure
Company Name will colocate a replicated copy of its servers within a
cloud-based PaaS facility and will use load balancing to share traffic between
the two. Company Name will implement an automatic failover between the
servers.
Desktop
power
failure
Company Name will plug all desktop systems into UPS devices.
Fire Company Name will house its servers within a cloud-based PaaS provider,
which will act as fire suppression. Company Name will insure its desktop
computers against loss from fire.
Flood Company Name will house its servers within a cloud-based PaaS provider that
does not reside within a flood zone. Company Name will insure its desktop
computers against loss from flood.

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Virus Company Name will install antivirus software on all systems, place a firewall in
front of the network, and prevent users from installing software.
CHAPTER SUMMARY
Since 9/11, a primary job of corporate IT staffs has been to ensure the
availability of computing resources (applications, files, and even phone systems)
not only on a day-to-day basis, but also in the event of a crisis or natural disaster.
Business continuity refers to the policies, procedures, and actions taken by an
organization to ensure the availability of critical business functions to
employees, customers, and other key stakeholders. Disaster recovery describes
the steps a business will take to restore operations in the event of a disaster (fire,
flood, hurricane, tornado, or other event). By integrating cloud-based solutions,
many companies have significantly reduced the cost of their business continuity
programs while simultaneously reducing potential risks.
KEY TERMS
Business continuity
Disaster recovery plan (DRP)
Halon
Mean time between failure (MTBF)
Redundant array of independent (or inexpensive) disks (RAID)
Service-level agreement (SLA)
Uninterruptible power supply (UPS)
Virus
CHAPTER REVIEW
1. Define and describe business continuity.
2. Define and describe disaster recovery.
3. Discuss pros and cons of cloud-based backup operations.
4. Discuss threats to an IT data center infrastructure and provide cloud-based
solutions to mitigate the risks.

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5. Create a DRP for a company with which you are familiar.

chapter 11
Service-Oriented Architecture
“SOFTWARE ARCHITECTURE” DESCRIBES THE major components that
comprise a system, their relationships, and the information the components
exchange. The distributed nature of the cloud has provided an ideal platform to
support service-oriented architecture (SOA), an architectural approach to
building solutions through the integration of services. This chapter introduces
SOA and its implementation through web services.
Learning Objectives
This chapter examines SOA. By the time you finish this chapter, you will be able
to do the following:
• Define and describe SOA.
• Compare and contrast the roles of web services and web pages.
• List common examples of web services.
• Discuss the benefits of treating a web service as a black box.
• Discuss governance challenges in using web services.
• Discuss the role of the Web Service Description Language (WSDL) to describe
a web service and its methods.
Understanding Service-Oriented Architecture

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A software system consists of components that implement different aspects of
the processing. There are many different ways to create the architecture for a
system—its components and their relationships and interactions.
Service-oriented architecture (SOA) is a system design upon which the
solution is described in terms of one or more services. Normally, to promote
reuse, the services are distributed on the Web. When a program must use a
service, the program exchanges messages with the service, normally through the
use of a remote-procedure (method) call, as shown in FIGURE 11-1. This chapter
examines the use of web services to implement SOA design.

FIGURE 11-1 Within SOA, programs make remote-procedure calls to services
that reside on servers distributed across the Web.
Web Services Are Not Web Pages
Across the Web, people use sites that perform specific tasks. For example, they
book travel on Travelocity, buy books at Barnes & Noble, check their account
balance at Bank of America, and order pizza from Domino’s. These sites offer
services to the user, but they are web pages, not web services. A web service is
program code that resides on the Web and performs a specific task that other
programs, not people, use. The following are examples of tasks performed by a
web service:
• Return the weather conditions for a specific zip code
• Return real-time traffic conditions for a road or highway
• Return a stock price for a particular company
• Return driving directions to a specific location

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• Return the country associated with an IP address
Programmers use web services within their programs to perform specific
processing. To use a web service, a program exchanges messages across the

FIGURE 11-2 A program exchanges messages with a web service to call a specific
method and then normally waits for the web service to return its result.
Internet with the web service that resides on a remote server. The program may
pass parameter values to the service, such as a stock symbol of a company for
which the program wants the stock price or the zip code of the area for which the
program wants weather conditions. When a program calls a web service,
normally the program will send its message to the web service via a function call
and then wait, as shown in FIGURE 11-2, for the web service to return its result.
CASE 11-1 TEST DRIVING WEB SERVICES
As discussed, a web service is code that a program calls from across the Internet
to perform a specific task. To help you understand how a program might use a
web service, there are several simple programs (web applications) hosted on this
book’s companion website. In each case, the program creates a web page within
which it displays information it receives from a web service.
Exercise Discuss potential pros and cons of using a web service to accomplish a
specific task.
Web Resources To test drive several programs that use web services, visit
www.CloudBookContent.com/Chapter11/index.html.
Many Companies Provide Web Services

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When programmers create applications, often they need programs to perform
tasks that involve another company, such as the following:
• Determining the shipping rate to send a package via UPS or FedEx
• Determining if a company has a particular product in inventory and, if so, the
quantity available
• Performing credit card processing
• Placing an order for a product
To help programs perform such tasks, many companies provide web services.
For example, FedEx and UPS provide web services that programs can use to
integrate each company’s shipping and tracking capabilities. Amazon provides
web services that programs can use to integrate product searching and
purchasing into their applications. Google provides web services that programs
can use to access the site’s search-engine capabilities.
Discovering Web Services
Before a developer can take advantage of an existing web service, he or she must
know that the web service exists. Companies such as FedEx, UPS, Amazon, and
Google usually have developer-specific web pages that provide documentation
for their service offerings. Across the Web, developers may take advantage of
registries within which other programmers store information about the web
services they create. More than 10 years ago, when developers first began
deploying web services, a large registry, known as Universal Description,
Discovery, and Integration (UDDI), emerged. The goal of UDDI was to make it
easier for a developer and a program to discover web services. Unfortunately,
UDDI was never widely used and was shut down.
CASE 11-2 XMETHODS WEB SITE
As programmers develop web services, often they will share them with
others—sometimes for free, sometimes not. At the XMethods website, shown in
FIGURE 11-3, you can find a wide variety of web services available for use within
programs. Even if you are not a developer, you should visit the site to gain a
better understanding of the types of tasks performed by web services.
Exercise Visit the XMethods website. Describe three different web services listed
that programmers might use within a business application.

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Web Resources For more information on web services, visit
www.CloudBookContent.com/Chapter11/index.html.

FIGURE 11-3 You can find a wide variety of web services at the XMethods
website.
Understanding Web Service Performance
Primarily because of their distributed nature, web services provide advantages
to developers, the most important of which is ease of code reuse. The cost of a
web service’s distributed processing is performance. Because web services
require network operations, a web service will be considerable slower than a
program’s call to a function that resides on the same computer. Consider, for
example, the following C# program that determines the square root of the values
1 to 1,000:

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The program simply tracks how long it takes to perform its processing and then
displays output similar to the following:
Ticks required: 5
In this case, the square root processing takes 5 ticks (100 nanosecond intervals)
to complete.
In contrast, consider the following C# program that uses a remote web service to
calculate the square-root values:

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In this case, the program displays output similar to the following:

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Ticks required: 10,562,000
As you can see, the message-passing overhead associated with calling the remote
web service increases the processing to more than 10,000,000 ticks.
These examples illustrate that due to network overhead, a web service, despite
its increased code reuse, is not always the best solution to a problem.
Web Service and Reuse
When programmers develop code, they break large, complex operations into
smaller, more manageable tasks. Then they implement the well-defined tasks as
functions. Ideally, each function should perform one task only. In this way,
programmers can reuse the function code in other programs, which saves
development and testing time and ultimately reduces costs. A common rule of
programming is not to “reinvent the wheel,” which means that if another
programmer has written code that performs the task that your program needs,
you should reuse that code.
Web services contain functions that perform specific tasks. Normally, the web
service’s functions will perform key tasks that many programs need. As a result,
web services typically have a high level of code reuse.
Scaling Web Services
Chapter 19, Application Scalability, examines ways to scale cloud-based
applications. Depending on its program demands, a web service may become a
potential system bottleneck. An easy first solution is to scale up the web service
by placing it on a faster server. If high utilization of the service continues, the
developers may need to distribute copies of the web service onto additional
servers and then use a load balancer, as shown in FIGURE 11-4, to distribute the
program requests.

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FIGURE 11-4 Using a load-balancing model, developers can scale a web service
solution.
Web Services and Loose Coupling
As you have learned, a web service contains code that programs can call from
across the Internet to perform a specific operation. Coupling describes the
degree of dependence between a calling program and the web service. Ideally, to
use a web service, a program only needs to know the location of the web service
(its URL), the name of the functions (methods) the web service provides, and
parameters the program can pass to the functions. In this way, programs and
web services are said to be loosely coupled.
Because of a program’s loosely coupled relationship to a web service, it is
possible for a developer to update a web service with a newer version (perhaps a
faster version) and for programs that use the service to use the new version
immediately without requiring any modifications.
Treating a Web Service as a Black Box
The term black box describes a module for which the software developer does
not care how the processing is performed, but instead, knows that the code,
when provided valid inputs, will produce predictable results.

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Based on a web service’s loosely coupled relationship with a program that uses
the service, the developer is confident that he or she can treat the web service as
a black bos and not worry about how it performs a task. Instead, the developer
trusts that, with valid input, the web service will function consistently.
Web Service Interoperability
One of the biggest advantages of web services is their interoperability. In other
words, they can be called from programs using a variety of programming
languages. Consider, for example, the following web service that provides two
methods, Uppercase and Lowercase, which return the uppercase or lowercase
equivalents of the character strings they receive:

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This particular web service was written using the C# programming language
within a .Net environment. The following C# program uses the methods the web
service provides:

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When you compile and execute this program, it displays the following output:
HELLO world
Because they are interoperable, web services can be called from different
programming languages. The following PHP script uses the web service:

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When you run this script, it displays the following output:
Hello, world
HELLO world
Web Service Description Language
A web service consists of one or more functions, each of which performs a
specific task and normally returns a specific result. Within the web service, each
function has a unique name and may receive zero or more parameter values. For
example, a web service function called HousePayment might receive parameter
values for the principal, interest rate, and length of the loan. Behind the scenes,
the web service uses a Web Service Description Language (WSDL) file to
describe the web service and its methods. Programs that use the web service will
use the WSDL file to determine the available functions, parameter types, and
more. The following statements, for example, contain the WSDL statements for
the previous web service that provides the Uppercase and Lowercase methods.
Within the WSDL, you can determine the methods supported, the values
returned, and the types of parameters received:

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213

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Governing Web Services

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Chapter 15, Governing the Cloud, examines the process of governing cloud
operations to confirm that applications work correctly and are protected from
potential malicious modification by an external source. A web service is program
code that resides on a server that belongs to the company whose programs use
the service, or on a server owned by a third party. Before a developer uses a web
service within an application, the company’s IT staff should ensure that the web
service implementation and deployment satisfies their policies and procedures.
These may include requirements such as the following:
• The solution must be developed and deployed by a reputable company.
• The solution cannot be dynamically changed or updated without the
company’s notification and approval.
• The solution must provide secure communications to avoid threats such as a
man-in-the-middle attack.
• The solution must be scalable to meet potential demand.
• The solution must be able to be validated.
CHAPTER SUMMARY
Developers often refer to the major components of a software system as the
system’s architecture. To leverage the distributed nature of the cloud, developers
make extensive use of SOA. Using this architecture, developers build systems by
taking advantage of distributed web services, which may reside on a server
anywhere across the Web. Traditionally, programs call the remote web service
the same way it calls a function or subroutine, passing optional parameters to the
service and waiting for an optional response. Today, companies such as Amazon
and eBay offer a wide range of web services that perform specific tasks, which
programmers can integrate into the applications they create. This chapter
examined SOA and its implementation through web services.
KEY TERMS
Architecture
Black box
Coupling
Interoperability
Loosely coupled

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Method
Service-oriented architecture (SOA)
Web Service Description Language (WSDL)
CHAPTER REVIEW
1. Define software architecture.
2. Define and describe SOA.
3. Compare and contrast a web page and a web service.
4. Search the Web for companies that offer web services and then describe three
to five web services that programmers might integrate into the applications they
create.
5. Discuss what it means for a web service to be interoperable.

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chapter 12
Managing the Cloud
OFTEN, BY MOVING A solution to the cloud, IT managers shift a great deal of
day-to-day management from their in-house department to the cloud-solution
provider. That said, the IT manager must not relinquish oversight and
responsibility for performance and data management. Instead, he or she must
provide essential oversight of the key system operations.
Learning Objectives
This chapter examines essential cloud-management operations. By the time you
finish this chapter, you will be able to do the following:
• Discuss components often found within a service-level agreement.
• Define and discuss vendor lock-in and specify steps a manager should take to
reduce this risk.
• Discuss a manager’s potential use of audit logs to identify system bottlenecks
and resource use.
• List the specific aspects of the cloud deployment that a manager must oversee.
Know Your Service-Level Agreement
When you contract with a cloud-solution provider, part of your contract will
contain a service-level agreement (SLA), which defines the levels of service the
provider will meet. Common components of an SLA include the following:
• System uptime, normally expressed as a percentage, such as 99.9 percent
• Run-time monitoring capabilities and event notification
• Billing policy for various types of resource use (e.g., CPUs, disk space, and
databases)
• Technical support operations (e.g., call-time delay and event response time)
• Data-privacy policy
• Multitenant systems and applications

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• Customer and provider roles and responsibilities
• Backup policies and procedures
• Resolution steps in case provider fails to meet the service levels
CASE 12-1 APICA CLOUD LOAD PERFORMANCE TESTING
A key responsibility of cloud managers is to monitor system performance.
Several sites in the cloud provide response time-based cloud performance
monitoring; others provide load testing, which measures how a site will
perform during high user demand. The Apica website, shown in FIGURE 12-1,
provides both types of testing, as well as cache-utilization assistance, which the
company says will significantly improve a site’s responsiveness.
Exercise Discuss how a company might deploy load testing and the specific types
of tests the process might include.
Web Resources For more information on Apica, visit
www.CloudBookContent.com/Chapter12/index.html.

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FIGURE 12-1 The Apica site offers performance monitoring, load testing, and
assistance in configuring a site’s cache settings.
Ensure and Audit System Backups
Chapter 6, Data Storage in the Clouds, discusses cloud-based backups in detail.
Managers should consider different forms of backups. First, your company may
back up user files from on-site computers to disks that reside within the cloud.
Hopefully you will never require these backups; but regardless, you should
periodically audit the backups, perhaps by checking that you can successfully
restore randomly selected files of different users.
CASE 12-2 DISTRIBUTED MANAGEMENT TASK FORCE CLOUD-MANAGEMENT
STANDARDS
The Distributed Management Task Force (DMTF) consists of hundreds of
organizations and thousands of members who work to provide IT standards. As
shown in FIGURE 12-2, the DMTF provides standards and recommendations for
managing the cloud and virtual solutions.
Exercise Review the DMTF cloud-management recommendations. List the top
10 recommendations.
Web Resources For more information on the DTMF cloud-management
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FIGURE 12-2 The DMTF provides cloud-management standards and
recommendations.
Second, if the cloud provider stores some or all of your company data, you must
understand the provider’s backup process (and include it in the SLA). For
governance purposes, you should know if the data is encrypted, who has access
to it, and if it is replicated to a remote facility. If it is backed up to another
location, you must know where and how often.
Additionally, if the provider uses a database to store your company data, you
need to know if and how the data is replicated and whether your company’s
information is stored in a private or multitenant database. You should also know
the system’s guaranteed uptime.
Know Your System’s Data Flow
Often, developers and managers think of a cloud solution as a black box, which
means that they know what the system does but not how it does it. Chapter 15,
Governing the Cloud, discusses the role of internal controls in providing
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second, that the solution cannot be manipulated by external factors; and third,
that the solution is auditable.
Managers should create a detailed process-flow diagram that shows the
movement of company data throughout the cloud solution. They should also
identify within the dataflow various points for the placement of internal controls
or auditing.
CASE 12-3 EMBOTICS CLOUD AND VIRTUALIZATION MANAGEMENT TOOLS
For many IT professionals, managing device virtualization and cloud deployment
is a daunting task. To facilitate the process, Embotics offers V-Commander, an
off-the-shelf-product that offers life cycle solutions for managing private cloud
deployments and optimizing the underlying virtual devices. As shown in FIGURE
12-3, Embotics states that with its product an IT team can install the software
and manage the cloud within one hour.
Exercise Discuss how cloud-management considerations may vary across the
life cycle of a cloud-based solution.
Web Resources For more information on Embotics, visit
www.CloudBookContent.com/Chapter12/index.html.

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FIGURE 12-3 Embotics provides tools to assist in cloud management.
Beware of Vendor Lock-In
Relationships can go bad—even those with a cloud-solution provider. The
agreement you sign with a cloud provider should stipulate exit procedures in
case the provider fails to meet the service levels or breaches any other aspect of
the contract.
IT managers must be able to control their company’s data. In the event of a
worst-case scenario, a manager must be able to export the company data, ideally
to a file that can be imported by another provider. Managers should test this
capability before a problem arises.
Vendor lock-in occurs when a provider does not support data export or when a
provider’s service is unavailable through others. Thus, the customer is “locked
in” to the relationship with the vendor. If this happens, a company may have to
put up with breaches of its SLA because it has no other place to move its data.
Managers should consider the risk of vendor lock-in before they enter into a
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Source-Code Escrow
Companies fail. Therefore, managers, should perform due diligence on a
cloud-solution provider before they enter into an agreement. The manager may
want to arrange a source code escrow agreement, which places a copy of the
provider’s programming language source code with a third-party escrow
company. Then, if the solution provider fails, the company can acquire and
deploy the source code, put it on its own system, and implement the provider’s
solution.
CASE 12-4 JITTERBIT CLOUD INTEGRATION
Many organizations use multiple cloud-based solutions provided by a variety of
providers. Often, IT managers must integrate the various solutions, such as
combining sales and financial data, or human resource and enterprise-resource
planning solutions. Jitterbit, as shown in FIGURE 12-4, provides integration for
cloud-based solutions without the need for programming. Jitterbit provides a
drag-and-drop interface that allows a manager to define how applications
integrate and share data. For companies with in-house developers, Jitterbit
provides advanced scripting tools so that developers can incorporate business
rules into the data-integration process.
Exercise Discuss challenges associated with integrating data from different
cloud-based solutions.
Web Resources For more information on Jitterbit capabilities, visit
www.CloudBookContent.com/Chapter12/index.html.

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FIGURE 12-4 Jitterbit provides a drag-and-drop tool for data integration across
cloud-based solutions.
Determine Technical Support and Help Desk Procedures
Depending on the solutions it places in the cloud, a company may have various
help desk support requirements. For example, in the case of a Solution as a
Service (SaaS) solution, the cloud-solution provider may provide software
technical support. For Platform as a Service (Paas) or Infrastructure as a Service
(IaaS) solutions, however, the company may provide software technical support.
There may also be shared support responsibilities. In all cases, an IT manager
should ensure that the support specifics are defined within the SLA.
Determine Training Procedures
To be successful, large-scale cloud applications often require user training
before, during, and after the integration. For SaaS solutions, the cloud-service
provider normally provides user training. Depending on the application’s
processing, the company may need to augment the training with in-house
instruction. The IT manager should stipulate the training responsibilities within
the SLA.

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CASE 12-5 NETUITIVE PREDICTIVE ANALYTICS AND CLOUD MANAGEMENT
Predictive analytics tools perform statistical analysis to predict future
behavior. Netuitive integrates predictive analytics to provide IT managers with
insights into how a solution will work under different conditions. Netuitive
software can monitor a group of integrated or stand-alone cloud-based solutions.
The software’s self-learning capabilities allow the software to identify demand
trends and more. As shown in FIGURE 12-5, Netuitive provides a dashboard and
drill-down reporting.
Exercise Discuss factors a company might want to consider before using
predictive analytics of a cloud-based solution.
Web Resources For more information on Netuitive predictive analytics, visit
www.CloudBookContent.com/Chapter12/index.html.

FIGURE 12-5 Netuitive provides predictive analytics that an IT manager can use
to model a site’s future behavior.
Know the Provider’s Security Policies and Procedures

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As discussed throughout this book, many clients are apprehensive about storing
their data in the cloud. To reduce these concerns, IT managers should thoroughly
understand the provider’s security plans, policies, and procedures. Specifically, a
manager should be aware of the provider’s multitenant use, e-commerce
processing, employee screening, and encryption policy. He or she should
examine the provider’s use of firewalls, intrusion detection, and security
mechanisms. These security factors should be defined in the SLA.
Define the Data Privacy Requirements
If a company has specific data-privacy requirements, such as the Health
Insurance Portability and Accountability Act (HIPAA) for health care or the
Family Educational Rights and Privacy Act (FERPA) for student data, it should
ensure that the SLA details the specific requirements.
CASE 12-6 NEW RELIC CLOUD-PERFORMANCE MONITORING
When it comes to cloud-performance monitoring, most managers spend 80
percent of their time monitoring 20 percent of a solution’s code (see Chapter 19
and the Pareto Principle). New Relic, shown in FIGURE 12-6, provides monitoring
software that will examine system performance to identify potential bottlenecks.
New Relic software supports most common programming languages and can be
easily integrated into a site.
Exercise Discuss common bottleneck locations within cloud-based solutions.
Web Resources For more information on New Relic cloud-performance
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FIGURE 12-6 New Relic provides cloud-performance monitoring and bottleneck
identification.
Know Specifics About the Economics of the Cloud and Return on Investment
Chapter 16, Evaluating the Cloud’s Business Impact and Economics, examines the
financial considerations for moving a solution to the cloud. An IT manager must
evaluate the cloud’s impact on capital as well as operational expenses. Managers
should prepare a budget that compares the on-site costs to the cloud-based
solution costs. Chapter 16 presents several online tools that can help managers
produce such budgets.
CASE 12-7 STRANGELOOP SITE OPTIMIZATION
Across the cloud, developers strive for web pages that load in two or three
seconds or less. There are a variety of site performance monitoring tools you can
use to measure a site’s responsiveness. That’s the easy part. The hard part is
making slow pages load faster. Often, that requires a company to take steps such
as eliminating or compressing graphics, compressing text, and improving cache
utilization. In the age of increasing bandwidth, many web managers may ask,

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“What’s the big deal about a one- to two-second delay?” Research shows,
however, that such delays are why customers log off of websites! Strangeloop,
shown in FIGURE 12-7, provides a site-optimizing solution that companies can
easily deploy to improve their site’s performance.

FIGURE 12-7 Strangeloop provides site-optimizing solutions that are easily
integrated by cloud-based solutions.
From the Strangeloop website, you can evaluate a specific site. For example,
FIGURE 12-8 shows a performance report created by Strangeloop.
Exercise Use the Strangeloop site to evaluate a site of your choice. Discuss the
insights you gained from the report.
Web Resources For more information on Strangeloop reporting, visit
www.CloudBookContent.com/Chapter12/index.html.

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FIGURE 12-8 A site performance report created by Strangeloop.
Monitor Capacity Planning and Scaling Capabilities
Chapter 19, Application Scalability, examines capacity planning and scalability
issues in detail. For SaaS solutions, the cloud-solution provider will scale the site
to match user demand. An IT manager, however, must define in advance key
response-time metrics the solution must provide and then include those
measures within the SLA.
For PaaS and IaaS solutions, the IT manager must initially estimate the solution’s
capacity plan, which defines the resources the solution will need to operate
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and define, with the help of the solution provider, the plan for scaling the site
resources as well as the related costs.
Several sites within the cloud provide system-performance reports that
managers can use to measure current performance and the potential system
benefit from scaling specific resources.
Monitor Audit-Log Use
To identify potential system bottlenecks, detect errors within the system, and
identify system-resource use, the IT manager may examine various system log
files. In a PaaS or IaaS solution, the manager can likely turn on the log file
reporting that meets his or her needs. For a SaaS solution, the manager should
discuss in advance with the cloud service provider the various logs that will be
available and the costs of running them, both in terms of dollars and system
performance.
CASE 12-8 UPTIME SOFTWARE
Too often, cloud-solution managers do not know that a system error has
occurred until a user reports one. With Uptime, IT managers can easily monitor a
wide range of servers and produce resource utilization reports similar to that
shown in FIGURE 12-9. Companies can download, install, and use a trial version of
the Uptime software from the company website.
Exercise Discuss how you would determine a return on investment for
system-event notification, such as a system failure.
Web Resources For more information on Uptime, visit
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FIGURE 12-9 The Uptime site provides system monitoring and utilization
reporting capabilities a site manager can easily implement.
Solution Testing and Validation
Just because a company provides a solution does not mean that the solution is
error free. An IT staff using a cloud-based solution must test the solution and
periodically audit key processing to confirm that the application is providing
correct results. In particular, a cloud-service provider will often perform patch
management and version updates. The IT staff should be aware of all system
modifications and test accordingly.
CHAPTER SUMMARY
IT managers, by moving a solution to the cloud, shift considerable day-to-day
management issues from their IT department to the cloud-solution provider.
However, an IT manager must not relinquish the oversight and responsibility for
performance and management. Instead, the manager must provide essential
oversight of the key system operations. The manager’s key tool for managing the
cloud-service provider is the SLA, which should contain specifics about key
performance issues, policies and procedures, and clear definitions of all levels of
responsibility.

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KEY TERMS
Load testing
Predictive analytics
CHAPTER REVIEW
1. Discuss key items that should be included in an SLA.
2. Define predictive analytics and discuss how an IT manager might use such
analytics.
3. Discuss how an IT manager might use load testing on a site.
4. Define and discuss vendor lock-in and identify steps a company should take to
mitigate this risk.
5. With respect to cloud-based solutions, list and discuss 5 to 10 operations or
tasks an IT manager should oversee.

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chapter 13
Migrating to the Cloud
FROM A TECHNICAL PERSPECTIVE, an application can be moved to the cloud
quickly. There are a myriad of cloud-solution providers who will eagerly assist by
giving you instant access to cloud-based servers, data storage, and support. That
said, like all IT projects, the process of moving an application to the cloud, or the
process of creating and deploying a new cloud application, should be well
planned. This chapter examines issues that should be considered before you
move an application to the cloud.
Learning Objectives
This chapter examines the process of moving applications to the cloud. By the
time you finish this chapter, you will be able to do the following:
• Define requirements for migrating an application to the cloud.
• Describe the importance of backing up data before and after moving an
application to the cloud.
• Appreciate the benefit of using experienced consultants to assist with a cloud
migration.
• Describe an application in terms of its resource use.
• Define and describe vendor lock-in and discuss ways to avoid it.
• Describe the importance of training employees before, during, and after a
cloud migration.
• Describe the importance of establishing a realistic cloud-deployment schedule.
• Discuss key budget factors impacted by the cloud.
• Discuss potential IT governance issues related to the cloud.
• Define and describe cloud bursting.
Define the System Goals and Requirements

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All IT projects should begin with specific requirements. The process of taking an
application to the cloud, known as cloud migration, is no exception. As you
begin to define your solution’s requirements, consider the following common
issues:
• Data security and privacy requirements
• Site capacity plan—the resources that the application initially needs to operate
• Scalability requirements—the measurable factors that should drive scaling
events
• System uptime requirements
• Business continuity and disaster requirements
• Budget requirements
• Operating system and programming language requirements
• Type of cloud—public, private, or hybrid
• Single tenant or multitenant solution requirements
• Data backup requirements
• Client device requirements, such as computer, tablet, or smartphone support
• Training requirements
• Help desk and support requirements
• Governance and auditing requirements
• Open source software requirements (some people believe that open
source-based cloud solutions reduce the risk of vendor lock-in)
• Programming API requirements
• Dashboard and reporting requirements
• Client access requirements
• Data export requirements

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After you define your application requirements, discuss each in detail with
potential cloud-solution providers. Make sure you define all of your system
requirements clearly within the Service-level agreement (SLA).
CASE 13-1 CLOUDSWITCH CLOUD MIGRATION
Many companies have enterprise-based applications that are widely used by
their employees. These applications, therefore, are mission critical. CloudSwitch
provides a downloadable application that companies can install within their data
center that securely maps the company’s on-site applications to a cloud-based
solution in a matter of minutes. In other words, CloudSwitch, shown in FIGURE
13-1, provides a way for companies running Windows or Linux solutions to
migrate quickly to the cloud. The CloudSwitch migration program requires no
programming or development. Additionally, CloudSwitch provides a suite of
cloud-management tools that the IT staff can use to manage the solution after it
moves to the cloud.
Exercise Most IT projects fail or come in over budget. Discuss steps you would
take to reduce the risk of failure of a cloud-migration project.
Web Resources For more information on CloudSwitch, visit
www.CloudBookContent.com/Chapter13/index.html.

FIGURE 13-1 CloudSwitch provides tools to migrate applications to the cloud
and then to manage the application within the cloud.

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Protect Your Existing Data
Before you begin your application migration to a cloud provider, make sure that
you back up your data so that you can revert, if necessary, to a known restore
point. Then, be sure that you and the provider agree to the backup procedures
that will be employed after they take control of your data. As discussed, it is easy
to move a solution to a cloud provider. You need to ensure that it is equally easy
to move out of the cloud if necessary
Furthermore, if your company has specific privacy requirements, such as those of
the Health Insurance Privacy and Portability Act (HIPAA) for health care, or of
the Family Educational Rights and Privacy Act (FERPA) for education, have your
provider state explicitly, in writing, its data privacy policies and procedures.
Use an Experienced Cloud Consultant
Moving a solution to the cloud is a learning experience. The process has many
options and a wide range of potential pitfalls. Many companies provide
consultants who are experienced in the cloud migration process. Before you
begin your application’s migration to the cloud, you should consider hiring a
consultant. In most cases, you will find that this saves you money in the end by
helping you avoid costly mistakes.
CASE 13-2 3TERA CLOUD SOLUTIONS
Formerly know as Computer Associates, CA Technologies provides a wide range
of services and solutions to companies migrating to the cloud. To drive its cloud
offerings, CA Technologies acquired 3Tera, a company that helps businesses
move solutions to public and private clouds using a graphical user interface
(GUI) tool. As shown in FIGURE 13-2, the 3Tera website offers a turnkey
cloud-computing platform, driven by the company’s AppLogic software, which
allows large (enterprise) or small companies to migrate to the cloud through the
use of the 3Tera virtual appliance, a device that behaves very much like a virtual
machine. As user demand for an application grows, 3Tera can easily scale
solutions.
Exercise Visit the 3Tera site and research the company’s virtual appliance.
Discuss how the appliance differs from a server.
Web Resources For more information on 3Tera, visit
www.CloudBookContent.com/Chapter13/index.html.

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FIGURE 13-2 3Tera supports cloud migration through the use of its AppLogic
software.
Know Your Application’s Current Characteristics
Before you move your application to the cloud where you might face scaling
issues, be sure that you monitor your application to identify its key performance
indicators:
• Demand periods: Does the application have periods of high or low demand,
such as 8 A.M. to 5 P.M.?
• Average users: How many users typically use the system simultaneously?
• Disk-storage requirements: What are the application’s typical disk-storage
needs? Are the files permanent or temporary? Are most operations read or write
operations?
• Database-storage requirements: What are the application’s database
requirements? Is the database replicated in real time? What is the application’s
database read/write ratio?
• RAM use: What is the application’s range of physical and virtual memory use?
• Bandwidth consumption: What is the application’s bandwidth requirement?
• Caching: How does the application currently cache data?
Remember Vendor Lock-In

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Vendor lock-in occurs when a vendor makes it difficult for a company to switch
to another provider, even if the vendor has failed to fulfill the SLA. This lock-in
may occur because the vendor is unable to export data completely or because the
vendor provides services its competitors do not. A cloud-service provider should
make it easy for clients to move to another provider in the event that the
provider fails to meet one or more of the SLA requirements.
In the case of a Platform as a Service (PaaS) or Infrastructure as a Service (IaaS)
provider, moving a company’s applications and data should be relatively
straightforward. Moving from a Software as a Service (SaaS) provider, however,
may prove to be more difficult because of the specific capabilities of the vendor,
upon which the company relies. To reduce the risk of vendor lock-in, many
companies seek providers who support “open” solutions, which use open source
software such as Linux, PHP, and MySQL.
CASE 13-3 KAYAKO HELP DESK SOLUTIONS
Change-management consultants often cite the integration of a trained help desk
staff as key to an application’s successful integration. Kayako, shown in FIGURE
13-3, provides a variety of key help desk tools that a company should consider
before migrating a solution to the cloud. The following are features of the Kayako
software:
• Support ticket management
• Ticket escalation support
• Live support desk chat software
• Voice over Internet protocol (VoIP) phone integration
• Remote computer access
Exercise Discuss a company’s help desk requirements for SaaS, PaaS, and IaaS
cloud integrations.
Web Resources For more information on Kayako help solutions, visit
www.CloudBookContent.com/Chapter13/index.html.

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FIGURE 13-3 Kayako provides cost-effective help desk tools to support software
deployments.
Define Your Training Requirements
To reduce employee stress during an application’s migration to the cloud and to
increase employee productivity with the cloud-based tools, you should consider
training before, during, and after the cloud migration. As you define your training
requirements, consider the following:
• Employee preparedness for the SaaS solution
• Developer training on the solution application program interfaces (APIs)
• Administrator training for cloud-based operations
• IT-audit group training for corporate governance issues and internal controls
• Help desk support preparedness training
• Business continuity and disaster preparedness training
Given the cloud’s cost-effective ability to deploy solutions, training may prove to
be one of the most expensive aspects of the company’s cloud migration.
CASE 13-4 RIGHTSCALE CLOUD APPLICATION MANAGEMENT

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RightScale, shown in FIGURE 13-4, provides a fully automated
cloud-management platform that lets companies deploy cloud-based solutions
across one or more clouds. RightScale provides its cloud-management software
as a SaaS solution that lets customers deploy and manage their solutions quickly.
The RightScale website also features valuable videos, white papers, and forums
that focus on cloud computing.
Exercise Discuss a scenario within which a company might have to manage
multiple cloud solutions.
Web Resources For more information on RightScale, visit
www.CloudBookContent.com/Chapter13/index.html.

FIGURE 13-4 RightScale provides support for application deployment to one or
more clouds.
Establish a Realistic Deployment Schedule
Cloud-solution providers can quickly deploy solutions. Despite that, you should
set a deployment schedule that provides sufficient time for training, testing, and
benchmarking. Many organizations, when moving a new application to the cloud
for the first time, will establish a beta-like release schedule that offers employees
a prerelease opportunity to interact with the software and provide feedback.
Furthermore, the testing period may provide time for the company to establish
early system-performance benchmarks.

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Review the Budget Factors
Chapter 16, Evaluating the Cloud’s Business Impact and Economics, examines the
steps you should perform to determine the return on investment (ROI) and total
cost of ownership for a cloud-based solution. In Chapter 16, you will learn that
the cloud’s pay-for-use model significantly reduces a company’s capital
expenditures compared with what would normally be required to fund a data
center. Furthermore, you will learn that because of a cloud provider’s economies
of scale, the providers can normally offer solutions at lower cost than a company
would normally pay for the same on-site solution.
Before you move to the cloud, you should consider key budget factors, which
may include the following:
• Current data center costs breakdown, including the following:
• Rent
• Power and air conditioning
• Colocation costs
• Server costs
• Data storage costs
• Network costs
• Current payroll costs for existing site administrators and projections for
possible staff reduction opportunities
• Current costs for software licenses that may shift to the cloud, and the (lower)
projected cloud-based costs for the software
• Current payroll costs for patch management and software version updates
• Current hardware maintenance costs
In Chapter 16, you will find many cloud-based tools to help you analyze the
cloud’s potential economic impact on your company.
CASE 13-5 GOGRID CLOUD HOSTING
GoGrid is a very large IaaS solution provider that provides scalable solutions to
thousands of customers. At GoGrid customers can acquire on-demand solutions

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for physical, virtual, or hybrid servers at cost-effective pricing levels.
Additionally, GoGrid offers solutions for load balancing, colocation, and
cloud-based data storage.
Exercise Discuss the pros and cons of using a large cloud provider instead of a
smaller provider.
Web Resources For more information on GoGrid, visit
www.CloudBookContent.com/Chapter13/index.html.
Identify IT Governance Issues
Chapter 15, Governing the Cloud, examines the IT governance process and how
the cloud extends the governance requirements for your IT staff. Before you
migrate an application to the cloud, consider the following governance
requirements:
• Identify how the cloud solution aligns with the company’s business strategy.
• Identify and define the internal and external controls the company will need
within the application, and at what control points, in order to validate that the
application is performing correctly and is free from possible external
modification.
• Describe risks the IT staff is trying to mitigate and ways the cloud can help.
• Describe who within the company will have access to data within the cloud and
how they will get it.
• Determine who within the cloud provider’s organization will have access to
data within the cloud and how they will get it.
• Discover how the cloud provider logs errors and system events and how you
can access them.
• Determine how and when the cloud provider performs system updates and
patches.
• Discover which performance-monitoring tools are available for your use.
Understanding Cloud Bursting
One of the cloud’s biggest advantages is its ability to scale on the fly to meet user
demand. Some companies that run on-site applications have started to use the

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cloud as a way to scale their applications on demand. When the on-site
application encounters increased user demand, the application expands into the
cloud through a process called cloud bursting, as shown in FIGURE 13-5. When
the user demand declines, the application leaves the cloud. Cloud bursting is
most common for seasonal demand, or event-driven demand, such as the load on
Google Maps when an earthquake or other natural disaster occurs.

FIGURE 13-5 Cloud bursting lets a company extend an on-site application into
the cloud to scale temporarily to meet user demand.
CHAPTER SUMMARY
An application can be moved to the cloud quickly—cloud-solution providers are
eager to assist with cloud-based servers, data storage, and support. In other
words, the technical aspects of moving a solution to the cloud are not difficult.
The challenge, for most businesses, is to ensure that the company is properly
trained, has established policies and procedures for cloud operations, and has
put in place necessary governance requirements. As with all IT projects, proper
planning and defining the requirements is essential before a company begins
moving an application to the cloud or creating and deploying a new cloud
application.
KEY TERMS
Cloud bursting
Cloud migration
Vendor lock-in
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1. List and describe common system requirements one should consider before
moving an application to the cloud.
2. Discuss why a company should consider using a consultant to oversee a cloud
migration and list specific skills you would expect the consultant to have.
3. List and discuss resource utilization characteristics one should monitor for an
application prior to moving the application to the cloud.
4. List possible training requirements for an SaaS solution integration, a PaaS
application migration, and an IaaS application migration.
5. List and describe budget considerations one should evaluate before moving an
application to the cloud.
6. List and describe IT governance considerations one should evaluate before
moving an application to the cloud.
7. Define and describe cloud bursting.

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chapter 14
Mobile Cloud Computing
IF YOU ASK A roomful of cloud computing experts whether the cloud is driving
the growth of mobile computing or mobile computing is driving the growth of the
cloud, the results will be mixed. In any case, within a few years, mobile
computing will be a trillion-dollar-a-year business. This chapter examines
various aspects of mobile computing and the underlying use of the cloud.
Learning Objectives
This chapter examines mobile computing in the cloud. By the time you finish this
chapter, you will be able to do the following:
• Describe the evolution of mobile computing.
• Discuss the different generations of cell phones.
• Discuss the ecosystem that comprises the mobile web.
• Describe the roles of phone network operators, transcoders, and proxies.
• Compare and contrast web pages, applications, and widgets.
• Discuss the importance of HTML5 with respect to mobile development.
• Describe mobile development considerations.
The Evolution of Mobile Computing
If you list inventions that have had the biggest impact on society, from the
automobile to airplanes to television and the telephone, the cell phone may (or
likely eventually will) top the list. It is important to note that in less than 30 years
the cell phone has evolved from a heavy cumbersome device, as shown in FIGURE
14-1, to a small handheld device with more than 1 billion users. Today, the
liveliest sector of the mobile phone market is “smartphones,” which integrate
computing capabilities, and often a web browser, which allows the phones to
provide a wide range of solutions. Beyond traditional phone calls, users use
smartphones to do the following:

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FIGURE 14-1 In less than 30 years, the cell phone has gone from a cumbersome
device used by early adopters to a handheld device used worldwide.
• Browse websites, including Google, Facebook, eBay, and more
• Place face-to-face video calls to phones and computers
• Perform GPS-based navigational operations
• Exchange text messages
• Perform e-commerce operations
• Run a myriad of applications (apps)
Understanding the G in 3G and 4G
When you discuss phone capabilities, you will hear terms such as 3G and 4G. In
the simplest sense, the G stands for generation. A 4G phone, therefore, is a
fourth-generation phone. Although there are standards with respect to the
potential speeds associated with each generation, the speed of most devices
today depends upon the location (some cities support faster speeds), the
provider network, and the phone technology, as well as whether the user is
moving or stationary. TABLE 14-1 describes the key generational attributes.
TABLE 14-1 THE COMMON GENERATIONS OF CELL PHONES

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Generation Capability

1G First-generation phones supported analog communication.

2G Second-generation phones introduced digital communication.

3G Third-generation phones supported faster speeds, which, in turn, made web
browsing and e-mail readily available.

4G Fourth-generation phones support near Wi-Fi speed, which enables rich media
and video streaming.

The Mobile Cloud Ecosystem
An ecosystem is an environment that consists of living and nonliving things with
which one interacts. Many cloud-based companies use the term ecosystem to
describe the user’s environment. To that end, you might describe the
mobile-cloud ecosystem as consisting of the following:
• Phone class, which may be voice or face-to-face
• Web browsing
• Apps and widgets

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• Voice commands and voice recognition
• Display screens
• Transmission speeds for upload and download operations
• Keyboard interface
• Touchscreens
The mobile cloud consists of apps and web pages that originate from sites
within the cloud from which users download, or with which they interact via a
mobile device. If you are creating a mobile solution, you should consider how
your solution interacts with or supports the various mobile-device ecosystem
components.
Introducing the Mobile Players
To understand mobile data communication, you should understand the players.
To start, the operator, or network, is the company that makes the mobile
network available. Within the United States, mobile operators include Verizon
and AT&T. In the simplest sense, the operator owns the cell tower through which
the data communication occurs. Most operators will provide internal groups that
support developers in bringing mobile solutions to the market.
Within most mobile networks, operators will place special servers, called
transcoders, which examine the content a mobile device is downloading from a
website. The transcoder, in turn, may change the document content, such as
changing a PNG graphic to a GIF graphic to improve the download performance
or device display. If you are developing mobile content, you must be aware of
how the transcoder may change the content. FIGURE 14-2, for example, shows
how a transcoder (in this case a Google transcoder) might modify the content of a
website.
Unfortunately, standards for transcoders are still being developed. As a result,
you may see differences, in some cases considerable ones, among the content
produced by different transcoders.
Many operators may include proxy servers (proxies) which perform operations
on behalf of a device. By serving as an intermediary, a proxy provides a level of
security that separates the device from the web server with which the device is
interacting.

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FIGURE 14-2 Within a mobile network, a transcoder may modify web content to
a form and layout more suitable for a mobile device.
Pages, Apps, and Widgets

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When developers build mobile solutions, they can approach their solution in one
of three ways. First, they can build a web page, ideally targeted for a mobile
display. As users browse the Web using mobile browsers built into their phones,
the contents of the web page appear.
Second, developers can build an app, which typically is a device-specific program
that users download and install (either free or for a price) onto a device. The app,
in turn, displays an icon on the device, which users click to start the app. FIGURE
14-3 illustrates a page from which users can access hundreds of thousands of
apps that have been created for the iPhone.
Third, developers can create a widget, which is much like an app that the user
downloads and installs to his or her mobile device. A widget differs from an app
in that the widget is always active. A clock widget’s icon, for example, might
constantly display the current time, a weather widget’s icon, in turn, might
display changing weather conditions, and a map widget may constantly update
its icon to show the user’s location. In other words, a widget is always running
and may possibly be communicating. Having many active widgets at one time
might affect a device’s performance.

FIGURE 14-3 From business apps, to games, to education, there are hundreds of
thousands of apps available for the iPhone.
CASE 14-1 W3C MOBILE PAGE CHECKER

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Web developers should be familiar with the W3C website and its outstanding
development tutorials and tools. When it comes to malformed HTML tags, mobile
web browsers, because of their compact size (code size), tend not to be as
forgiving as desktop browsers. Before you launch your mobile pages, you should
validate your code using the S3C Mobile Checker at www.w3c.org/mobile, as
shown in FIGURE 14-4.
Within the W3C Mobile Checker site, you simply enter the URL (web address) of
the page you want to examine. The W3C Mobile Checker, in turn, analyzes the
page’s HTML and displays a summary similar to the one shown in FIGURE 14-5.
Exercise Select several traditional web or mobile web pages you commonly visit
and use the W3C Mobile Checker to evaluate the pages. Report your findings.
Web Resources For more information on the W3C Mobile Checker, visit
www.CloudBookContent.com/Chapter14/index.html.

FIGURE 14-4 The W3C Mobile Checker provides warnings and error messages
that developers can use to improve the quality of their mobile web pages.

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FIGURE 14-5 A page summary created by the W3C Mobile Checker.
Revisiting the Role of HTML5
HTML is the markup language that developers use to build pages for display on
the Web and mobile web. When a user browses the Web, either with a computer
or mobile device, a web browser downloads and interprets the HTML tags to
build the display page the user sees. FIGURE 14-6, for example, shows a simple
HTML page and its resultant display within a web page and mobile device.
HTML5 is the fifth major release of HTML. HTML5 is important because
developers can use it to create multimedia pages similar to what they previously
created using Flash. Unlike Flash-based pages, which handheld browsers could
not display, HTML5 multimedia pages display on all devices. In this way, HTML5
opens a vast new area of development for mobile devices.

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FIGURE 14-6 An HTML markup file and its display within a web browser and
mobile device.
CASE 14-2 CISCO IBSG PRESENTATION: “WHEN MOBILE AND CLOUD COLLIDE”
Cisco is one of the key network solution companies driving the infrastructure
upon which the cloud resides. Within Cisco, the Internet Business Solutions
Group (IBSG) studied mobile solutions and their use of the cloud. The group
created five key predictions, which they titled “When Mobile and Cloud Collide.”
You can view the presentation from the Web Resources link below.
Exercise Discuss whether you believe the cloud is driving mobile or mobile is
driving the cloud.
Web Resources For more information on the IBSG mobile cloud predictions,
visit www.CloudBookContent.com/Chapter14/index.html.
Mobile Development Considerations
Chapter 18, Coding Cloud-Based Applications, looks at the details of creating a
cloud application—it is the chapter for coders and developers. Many people play
different roles in the development of a mobile solution (project manager, sales
and marketing, technical support, coder, tester, and more). If you work on a
mobile solution, remember the following development considerations:
• The mobile web is not the traditional web: You should not expect to use
your traditional web pages as mobile solutions. You should optimize your web
solutions and then optimize your mobile solutions.

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• Fast is good: Mobile data communication is still slower than most
computer-based data communication solutions. As such, you should optimize
your mobile web layout and design to maximize download performance.
• Remember your goals and requirements: As you design your mobile
solutions, keep your original goals and requirements in mind to ensure that your
solution matches your business strategy.
• You cannot support everything: Pick your largest market segment (or
device) and focus your initial efforts there.
• Do not treat mobile content as an afterthought; create, do not convert,
mobile content: Do not simply convert your traditional web content for use on
the mobile web. Instead, design your mobile content for optimal performance
and market impact.
• Handle different display sizes differently: Mobile applications should query
the browser or device to determine the supported display size and then provide
matching display content dynamically.
CASE 14-3 WEBKIT OPEN SOURCE BROWSER
As you drill down through the specifics of mobile web browsers, you will find
that many run the WebKit open source browser. You can learn more about this
browser and download the source code at the WebKit website, www.webkit.org,
shown in FIGURE 14-7.
Exercise Research several commonly used phones (based on market share).
Indicate whether the phones use the WebKit open source browser.
Web Resources For more information on the WebKit open source browser, visit
www.CloudBookContent.com/Chapter14/index.html.

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FIGURE 14-7 The WebKit open source browser provides the engine for many
handheld device browsers.
CASE 14-4 MOBIREADY PAGE CHECKER
Developers will often customize web pages for mobile delivery. As you develop
your pages, you should test their content against the mobiReady page checker,
shown in FIGURE 14-8. As you enter a URL on the mobiReady page, the site will
evaluate your page content and display a detailed report, similar to that shown in
FIGURE 14-9. Based on the report feedback, you can adjust your page
components.
Exercise Select several traditional and mobile web pages that you use regularly.
Use the mobiReady readiness test to examine the sites. Report your findings.
Web Resources For more information on the mobiReady site checker, visit
www.CloudBookContent.com/Chapter14/index.html.

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FIGURE 14-8 The mobiReady page checker examines key aspects of mobile page
content.

FIGURE 14-9 This report by mobiReady indicates not only that the site will
display nicely on a mobile phone, but also that there are areas that need
improvement.
CASE 14-5 THE “.MOBI” TOP-LEVEL DOMAIN

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Developers will often create separate web pages for mobile-device display. To
direct users to those pages, developers have several options. First, they can have
their web software detect the device type, such as a computer or phone, and then
download the appropriate pages dynamically. Second, many developers will
place the letter “m” before their site domain name (creating a subdomain), such
as m.somesite.com or even mobile.somesite.com. Third, just as sites use the
domain types.com, .org, and .edu, many mobile-based sites now use the “.mobi”
domain type, such as www.somesite.mobi.
Developers can purchase a .mobi-based domain name at most domain name
registry sites.
Exercise Assume you are launching a mobile web page. Discuss how you might
make your HTML pages available to site users.
Web Resources For more information on the .mobi domain type, visit
www.CloudBookContent.com/Chapter14/index.html.
CHAPTER SUMMARY
It is not clear whether mobile computing is driving the growth of the cloud, or
vice versa. Either way, the use of the cloud and the use of mobile devices
continues to grow exponentially. This chapter examined various
mobile-computing factors and their underlying impact on cloud-based solutions.
Today, most businesses understand the need to have a mobile-computing
presence. Many of the early players, however, came to the cloud with a
conversion of their traditional web-based content. To maximize the user
experience, developers must design solutions specifically within the mobile
ecosystem in mind. Whether a solution is a mobile web page, an app, or a widget,
many of these solutions will utilize underlying cloud-based resources.
KEY TERMS
App
Ecosystem
Mobile cloud
Proxy
Transcoder
Widget

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CHAPTER REVIEW
1. Define and describe the mobile web.
2. Describe the different generations of cell phones.
3. Describe how smartphones differ from ordinary cell phones.
4. Select a mobile or traditional website that interests you. Describe the site in
terms of the ecosystem that makes up the site’s user experience.
5. Describe how web pages differ from apps and how apps differ from widgets.
6. Discuss why developers say that HTML5 will drive mobile solutions.
7. Describe some development best practices for designing solutions for the
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chapter 15
Governing the Cloud
FOLLOWING THE DOT-COM CRASH and corporate scandals such as Enron,
Tyco, and WorldCom, pressures emerged from the government, shareholders,
and numerous other stakeholders for companies to increase their financial
oversight to reduce opportunity for fraud and to restore confidence in corporate
financial reporting. The need for better corporate governance became an issue
for all public companies. Because most of the data that drive corporate financial
reports originate within data centers, the new era of governance has brought
greater visibility and a greater need for controls to IT departments.
Learning Objectives
This chapter examines corporate and IT governance and the new challenges
introduced by cloud migrations. By the time you finish this chapter, you will be
able to do the following:
• Define and describe corporate governance.
• Define business strategy and provide examples of strategic goals.
• Discuss how companies use the Capability Maturity Model to measure their
current capabilities.
• Define and describe internal controls.
• Define and describe IT governance.
• Discuss the various types of governance a company must perform.
• Discuss the role of Sarbanes-Oxley in corporate IT governance.
• Discuss factors to consider when developing governance procedures for the
cloud.
Understanding Corporate Governance
Corporate governance combines the processes, policies, laws, and controls that
affect how a company operates. The governance guides the company’s
decision-making and administrative processes. Corporate governance, as shown
in FIGURE 15-1, is complex and involves people, processes, systems, and more.

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FIGURE 15-1 Components of the corporate governance process.
CASE 15-1 ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT
PRINCIPLES FOR CORPORATE DEVELOPMENT
In 1999, the Organization for Economic Cooperation and Development (OECD)
published the “Principles for Corporate Development”. It has been revised to
address corporate governance issues. You should take time to read this
document.
Exercise Read the “Principles for Corporate Development” and discuss the key
factors that guide the principles of corporate governance; that is, discuss groups
that are affected by the principles.
Web Resources For more information on the “Principles for Corporate
Development”, visit www.CloudBookContent.com/Chapter15/index.html.
Understanding Business Strategy
A strategy is a plan of action designed to achieve one or more particular goals. A
business strategy comprises the plans a company executes to achieve business
goals, which may include the following:

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• Maximizing shareholder value
• Reducing or managing costs to maximize profits
• Providing a high-quality work environment to attract and retain employees
• Maintaining a high degree of customer satisfaction
• Supporting environmentally friendly operations
• Developing a sustainable, competitive advantage
• Providing accurate reporting of company operations
Measure What Is Important
After a business defines its strategic plans, it must determine ways to measure
progress toward each goal. The initial measurement will establish a baseline for
the company’s current level of operations, and future measurements will
establish the company’s level of improvement.
CASE 15-2 CAPABILITY MATURITY MODEL
As companies begin to govern IT operations, they must identify their current
level of capability. The company might apply measures with respect to software
development, security, operations, user support, and more.
The Capability Maturity Model (CMM) was developed at Carnegie Mellon
University to help businesses measure and improve their current capabilities.
Over time, as a business matures and its skills improve, a company’s CMM scores
should increase. As scores increase, so too should the predictability and
reliability of the business.
To help businesses integrate the CMM process, Carnegie Mellon created the
Capability Maturity Model Integration (CMMI) process. In fact, the CMMI group
has defined processes for common industry activities, such as acquisitions,
security, software design, and system design.
Within CMM, there are five levels of maturity, as shown in TABLE 15-1.
A company evaluates its processes using the levels to define its current
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Exercise Select an organization that you know or one where you can interview a
manager. Identify the organization’s key operational tasks. Using the CMM, rate
the company’s current capabilities.
Web Resources For more information on the CMM, visit
www.CloudBookContent.com/Chapter15/index.html.
TABLE 15-1 MATURITY LEVELS WHITHIN THE CMM
Level Description Characteristics
1 Initial Processes are typically changing. Those that are static are likely
undocumented. Many operations are reactive.
2 Repeatable Some processes are repeatable, ideally with consistent results. Many
defined systems are still lacking.
3 Defined Many processes are now static and documented. Some processes are
under evaluation for improvement opportunities.
4 Managed Most processes are controlled and adjusted to improve quality.
5 Optimized Focus is on continuous improvement of existing processes.
Inspect What You Expect
Once a company defines its business goals and metrics, it must inspect the
underlying factors that drive business results. In other words, rather than take
its financials at face value, the company should examine the sources from which
the values are derived to ensure that each is accurate and free from fraud. This
inspection process is known as auditing.
The auditing process can be internal (done by the company) or external (done by
a third party), as shown in FIGURE 15-2.
Understanding Internal Controls

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The auditing process will identify key stages within processes that the auditor
should inspect. To support the process, the company should put in place its own
internal controls (policies and procedures) at each of these key stages, as
shown in FIGURE 15-3.

FIGURE 15-2 Companies must audit the source of the values they measure and
report using internal or external auditors.

FIGURE 15-3 Internal controls allow a company auditor to inspect data values at
key stages.

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CASE 15-3 COMMITTEE OF SPONSORING ORGANIZATIONS OF THE TREADWAY
COMMISSION
A key aspect of corporate governance is internal controls. In general, an internal
control is a process that provides assurance that the objectives of a company’s
operational goals and legal compliance requirements are being met, as well as
confidence in the accuracy of the reporting of operations. The Committee of
Sponsoring Organizations of the Treadway Commission (COSO) has defined a
model that companies can use to evaluate their internal controls.
The original COSO model’s framework consisted of five key components, defined
in TABLE 15-2.
To meet the demand for companies to address risk management, the COSO
framework has been expanded to support eight components, as listed in TABLE
15-3.
To download a variety of documents focused on internal controls and risk
management, or to order publications available for purchase, visit www.coso.org,
as shown in FIGURE 15-4.
Exercise Select a company with which you are familiar. List five potential
internal controls you would expect to see in place within the company’s IT group.
Web Resources For more information on COSO and internal controls, visit
www.CloudBookContent.com/Chapter15/index.html.
TABLE 15-2 THE ORIGINAL FIVE KEY COMPONENTS OF THE COSO MODEL
COSO Component Description
Control environment The organization creates an environment supportive of controls, which
includes ethical operations, managerial integrity, and compliant
operations.
Risk assessment Opportunities and existing processes are evaluated with respect to
potential risks and ways to mitigate the risks.

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Control activities Business operations include control activities such as approvals,
authorizations, reviews, and audits.
Information and
communication
Reliable and truthful communication flows up, down, and across the
organization, as well as out from it.
Monitoring Existing processes and internal controls are monitored on a consistent
basis.
TABLE 15-3 THE COMPONENTS OF THE EXPANDED COSO MODEL
COSO Component Description
Internal environment The organization creates an environment supportive of controls, which
includes ethical operations, managerial integrity, and compliant
operations.
Objective setting The business establishes defined and measurable objectives for
operations.
Event identification The business watches for, recognizes, and responds to events that will
impact operations.
Risk assessment Opportunities and existing processes are evaluated with respect to
potential risks and ways to mitigate the risks.
Risk response Management accepts risks based upon a consistent approach to risk
tolerance.
Control activities Business operations include control activities such as approvals,
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Information and
communication
Reliable and truthful communication flows up, down, and across the
organization as well as out from it.
Monitoring Existing processes and internal controls are monitored on a consistent
basis.

FIGURE 15-4 The COSO website provides documents on internal controls and
risk management. You can also order publications through the website.
CASE 15-4 CONTROL OBJECTIVES FOR INFORMATION AND RELATED
TECHNOLOGY
Control Objectives for Information and Related Technology (COBIT) is an IT
governance framework defined by the Information Systems Audit Control
Association (ISACA). COBIT defines dozens of processes an IT manager and staff
can use to plan, acquire, implement, deliver, support, monitor, and evaluate IT
solutions. COBIT, whose first version was released in 1996, has evolved to
support current IT capabilities and governance needs. COBIT is used by small
business owners to structure their IT processes and by larger companies and
organizations (public and governmental) to align IT and business strategies to
conform with regulations such as Sarbanes-Oxley and to implement IT best
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Exercise COBIT defines processes a company’s IT staff should consider when
performing common operations. Assume you must write the COBIT processes for
selection of a cloud provider. List the processes you would recommend.
Web Resources For more information on COBIT, visit
www.CloudBookContent.com/Chapter15/index.html.
Extending Governance to Information Technology
Within most companies, the data from which the company creates its reports
originates from data within the company’s IT department. As you might expect,
much of corporate governance is based upon IT-related factors.
Furthermore, over the past decades, companies have invested heavily in IT
solutions that drive a variety of company-wide (enterprise) applications.
Unfortunately, many IT projects fail due to poor management, incorrect
requirements, or misalignment of the IT solution with the company strategy. Put
simply, companies make large investments in IT solutions; to succeed, the
projects must be governed.
IT Governance is a subset of corporate governance that includes the policies,
procedures, and controls that relate to IT use and deployment, performance,
return on investment, and risk mitigation. As shown in FIGURE 15-5, IT
governance is one of many key types of governance a company must consider.

FIGURE 15-5 IT governance is one of many key types of governance a company
must consider.

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CASE 15-5 SARBANES-OXLEY
In 2002, in the aftermath of the dot-com crash and corporate scandals that
included Enron, Tyco, and WorldCom, Senator Paul Sarbanes of Maryland and
Representative Michael Oxley of Ohio cosponsored a Senate bill entitled the
Public Company Accounting Reform and Investor Protection Act and a House bill
entitled the Corporate Auditing, Accountability, and Responsibility Act. Once
passed, the law became known as Sarbanes-Oxley.
The law’s goal was to improve confidence in the truthfulness of company
reporting by requiring greater transparency and controls of the data that
companies report. The law put in place criminal penalties for corporate officers
who violated or failed to comply with the law.
As you would expect, Sarbanes-Oxley had a large impact on financial groups
within an organization who report a company’s financials. The law also had a
large impact on corporate IT groups, who had to implement auditable controls
on the processes, data, and applications that produced the information that
drove the financial reports.
In general, Sarbanes-Oxley was a major catalyst in driving the origin of IT
governance and the related processes. For more information on Sarbanes-Oxley,
download a copy of the act shown in FIGURE 15-6.

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FIGURE 15-6 Individuals responsible for IT governance of an organization
should review the complete Sarbanes-Oxley Act of 2002, which is available on
the Web.
Exercise Using the Web, research Sarbanes-Oxley. Provide a list of five reasons
why Sarbanes-Oxley should remain in effect and five reasons why it should be
abolished.
Web Resources For more information on Sarbanes-Oxley, visit
www.CloudBookContent.com/Chapter15/index.html.
CASE 15-6 IT GOVERNANCE INSTITUTE
The IT Governance Institute (ITGI) was formed in 1998 to assist businesses in
aligning IT solutions with business strategies. The institute conducts research on
the global practices and perceptions of IT governance. The institute makes many
of its best practices, case studies, and research papers available for sale or
download from its website, as shown in FIGURE 15-7.

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Exercise Assume you must make a presentation on IT governance to a
company’s board of directors. Prepare a 10-slide PowerPoint presentation that
introduces the key aspects of IT governance.
Web Resources For more information on the ITGI, visit
www.CloudBookContent.com/Chapter15/index.html.

FIGURE 15-7 You can find a wide range of research articles on IT governance at
the ITGI website.
Cloud Computing Governance
When a company moves to the cloud, the company must further extend its IT
governance. First and foremost, the company must ensure that on-site and
within-the-cloud solutions align with the company’s business strategies. If the IT
resource development and deployment does not align with company strategies,
the IT initiatives are destined to fail. Then, the company must govern the cloud
deployment. That is, the company must create policies, procedures, and controls
that not only ensure strategic alignment, but also provide confidence in the
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A key place to begin the cloud-governance process is with the service-level
agreement (SLA). Specific questions to consider with respect to the agreement
include the following:
• Who within the company can access the service?
• Who within the cloud provider can access the service?
• What can those who can access the service do?
• Is the solution multitenant?
• How is the service secured?
• How is the service replicated or colocated?
• How can the service be tested and validated?
• What is the service uptime?
• How and when is the service maintained?
• What controls can be implemented and at what stages of the service?
• How are errors and exceptions logged?
• How can performance be monitored?
• What is the upgrading and versioning process?
• What auditing support is provided?
CASE 15-7 CLOUDAUDIT AUTOMATED AUDIT ASSERTION, ASSESSMENT, AND
ASSURANCE API (CODENAME A6)
In the future, many cloud service providers will offer automated auditing
capabilities that companies can use as part of their cloud-governance
procedures. The CloudAudit/A6 working group consists of cloud-compliance
administrators, developers, security personnel, auditors, and others. The group’s
goal is to develop an application program interface (API) that developers can use
and cloud service providers will support, to allow the developers to monitor key
cloud issues.
For more information on CloudAudit/A6, visit the cloudaudit.org website shown
in FIGURE 15-8.

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Exercise Discuss the importance of having audit capabilities for cloud-based
solutions.
Web Resources For more information on CloudAudit/A6, visit
www.CloudBookContent.com/Chapter15/index.html.

FIGURE 15-8 The CloudAudit/A6 working group is defining an API that
developers will use to automate the auditing of key cloud operations.
CHAPTER SUMMARY
After the dot-com crash and corporate scandals such as Enron, Tyco, and
WorldCom, businesses were pressured by the government, shareholders, and
various other stakeholders to increase their financial oversight to reduce
opportunity for fraud and to restore confidence in financial reporting. As a result,
corporate governance became an issue for all public companies. Because IT
departments create and store most of the data that drive corporate financial
reports, the new era of governance has brought greater visibility and a greater
need for controls to IT departments. IT governance consists of the policies and
procedures the IT staff uses to control data and applications within a data center.
With the advent of cloud-based solutions, IT governance now extends to the
cloud.
KEY TERMS

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Auditing
Business strategy
Corporate governance
Internal control
IT governance
CHAPTER REVIEW
1. Define corporate governance.
2. Discuss the events that led up to the need for increased corporate governance.
3. Define business strategy. List five possible business strategies.
4. Discuss the purpose of the Capability Maturity Model.
5. Define auditing.
6. Define internal control and provide an example of a control.
7. Discuss the role Sarbanes-Oxley has played with respect to corporate
governance.
8. Define IT governance.
9. List factors one should consider with respect to governing the cloud.

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chapter 16
Evaluating the Cloud’s Business Impact an
d Economics
SO FAR, YOU HAVE learned that the cloud is bringing with it new business
models and economics. Large companies are saving costs, reducing staff, and
improving system scalability by moving from on-site data centers to the cloud.
Small companies are leveraging pay-on-demand models to “right-size” their
computing needs quickly and cost effectively. The cloud business model and its
economic opportunities for all businesses, large and small, is the subject of this
chapter.
Learning Objectives
This chapter examines the impact of the cloud business model on businesses and
the resulting economic opportunities. By the time you finish this chapter, you
will be able to do the following:
• Discuss the total cost of ownership for an IT solution.
• Compare and contrast the capital expenses and operational expenses of an IT
solution.
• Describe supply-side savings made available through large-scale, cloud-based
data centers.
• Describe and discuss the efficiencies gained to providers through multitenant
applications.
• Describe and discuss the “right-sizing” process.
• Identify the primary costs of a data center.
• Describe how Moore’s law relates to the cloud.
CASE 16-1 CLOUD ECONOMICS
Economics is the study of the production, distribution, and consumption of
goods and services. One of the best overviews of cloud economics, published in
November 2010, was written by two employees at Microsoft, Rolf Harms and
Michael Yamartino. The document provides an overview of the cloud, a historical

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perspective, and an easy-to-follow discussion of its impact on business (see
FIGURE 16-1).
Exercise Select an industry-changing event in history, such as the automobile
assembly line, the first commercial airline flight, or the advent of radio or
television, and compare the rate of adoption, societal impact, and economic
impact with that of the cloud.
Web References For more information on the Microsoft “Economics of the
Cloud” paper, visit www.CloudBookContent.com/Chapter16/index.html.

FIGURE 16-1 The authors of an influential white paper on the economics of the
cloud compare the current state of cloud computing with the early days of
“horseless carriages,” when no one could predict how the modern automobile
industry would evolve.
Business Economics 101
To understand the business and economics impact of the cloud, first you should
understand several key terms. The following sections examine key business
concepts and their impact associated with the cloud.

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Total Cost of Ownership
Computer hardware and software have associated direct and indirect costs. For
example, when you purchase a network-attached disk drive, you incur the direct
cost of the hardware device, plus, possibly, a warranty. Before you purchased the
device, you likely spent time researching it, shopping, and finally placing your
order, which then required tax and shipping expenses. After the device arrived,
you spent time installing, configuring, and testing it. Finally, the device was ready
for use and began to consume power and generate heat. Admittedly, for the one
disk drive in this case, the indirect cost may be small. The point is that you can
establish a series of costs before the acquisition, at the time of the acquisition,
and following the acquisition.
These different costs combined constitute the total cost of ownership
(TCO)—the total direct and indirect costs, including capital and operating
expenses, of owning a particular piece of equipment or other capital good. When
you examine the economics of the cloud, you need to consider the total cost of
ownership of an on-site solution compared with that of the cloud.
When you calculate the total cost of ownership for various computers, hardware,
network, and software solutions, you should consider the following items:
• Software (server, desktop, notebook, tablet, and mobile)
• Prepurchase research
• The actual software purchase or licensing
• Installation
• Training
• Version and patch management
• License management
• Security considerations
• Administration
• Hardware (server, desktop, notebook, tablet, and mobile)
• Prepurchase research
• The actual hardware purchase

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• Installation
• Testing
• Footprint and space
• System downtime
• Electricity and air conditioning
• Insurance
• Replacement costs of failed components
• Decommission, removal, and disposal of previous equipment
• Cost of scaling solutions to new demands
• System maintenance
• Data storage
• Prepurchase research
• The actual device purchase
• Installation
• Testing
• Security considerations
• Backup operations
• Footprint and space
• Electricity and air conditioning
• Maintenance
• Replacement costs of failed components
• Network equipment
• Internet access (Internet service provider)
• Prepurchase research
• The actual component acquisition

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• Installation
• Training
• Security considerations
• System downtime
• Maintenance
• Administration
CASE 16-2 AMAZON TOTAL COST OF OWNERSHIP SPREADSHEET
To help users calculate and then compare the total cost of ownership for a
cloud-based solution, collocated solution, and on-site solution, Amazon provides
the Excel spreadsheet shown in FIGURE 16-2. Using this spreadsheet, you can
perform a detailed analysis of the costs related to each solution.
Exercise Assume you must deploy a 2,000-server solution for a new technology
company. Using the Amazon spreadsheet, calculate and compare the total cost of
ownership for using Amazon web services, a colocated data center, and an
on-site solution.
Web Resources For more information on the Amazon total cost of ownership
spreadsheet, visit www.CloudBookContent.com/Chapter16/index.html.

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FIGURE 16-2 Amazon provides an Excel spreadsheet used to calculate the total
cost of ownership for common IT installation solutions.
Economies of Scale
Economies of scale describes the cost savings that a company may experience
(up to a point) by expanding. Assume, for example, that a data center has two
system administrators who oversee 100 servers. Each administrator is paid
$50,000. The cost per server for system administration becomes the following:

Assuming the servers are running similar operating systems, the two
administrators may be able to oversee as many as 1000 servers. In that case, the
cost per server for system administration becomes the following:

In this case, by scaling the number of servers, the company can reduce the
perserver administrative costs. Furthermore, the company may reduce its
per-server software licensing costs and other expenses due to the larger volume
of servers.
Because of their size, cloud-based data centers experience significant economies
of scale. As cloud-based data centers supply computing resources, providers can
offer supply-side savings. Additionally, because many cloud-based providers use
a multi-tenant approach, perhaps a software as a solution (SaaS) that uses virtual
servers or an infrastructure as a solution (IaaS) data center that houses multiple
clients, the providers gain efficiencies and cost reductions, some of which can be
passed on to the customer.
As discussed, one of the largest costs within the data center is power. Because
larger data centers can combine power across multiple customers, they can
purchase power at better rates than smaller data centers can.
Capital Expenditures
Capital expenditures (CAPEX) are large expenditures, normally for a plant,
property, or large equipment. Companies make large capital expenditures to
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value over a number of years, companies cannot expense the expenditures in full
during the current year. Instead, using a process called expense capitalization,
the company can deduct a portion of the expense over a specific number of years.
Different asset types, such as buildings, vehicles, and computers, are capitalized
over various lengths of time, based on rules of the U.S. Internal Revenue Service.
Traditionally, a company would have to make a large capital investment for a
data center facility, its computers, power supplies, air conditioning, and so on.
For many companies, the cloud eliminates the need for a large data center and
the corresponding capital expenditures. Instead, companies that use the cloud
experience operational expenses.
Operational Expenses
Operational expenses (OPEX) are expenses that correspond to a company’s
cost
of operations. Within a data center, for example, operating expenses include the
following:
• Power and air conditioning
• Rent and facilities
• Equipment maintenance and repair
• Internet accessibility
• Software maintenance and administration
• Insurance
When a company migrates its IT solutions to the cloud, it incurs a fee for the
cloud-based services it consumes. However, because of the cloud-service
provider’s economies of scale, the operational cost of using the cloud will likely
be lower than what the company would pay for an on-site data center.
CASE 16-3 MICROSOFT OPERATIONAL EXPENSE CALCULATOR
To help companies compare their operational costs to those of the Windows
Azure platform as a service (PaaS), Microsoft provides the Windows Azure
pricing calculator, shown in FIGURE 16-3.

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Exercise Assume you must deploy a system with the following attributes:
• 5,000 hours of medium computing capability
• 75 GB of relational database support
• 1 TB of disk storage
• 2 GB of data transfer
• Four 2048 MB caches
Use the Windows Azure pricing calculator to determine the corresponding
monthly operating expenses.
Web Resources For more details on the Windows Azure pricing calculator, visit
www.CloudBookContent.com/Chapter16/index.html.

FIGURE 16-3 The Windows Azure pricing calculator.
Return on Investment

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Return on investment (ROI) is a measure of the financial gain (or return) on an
investment, such as a new piece of equipment. For example, assume that a
company can repeatedly save $10,000 based on a $50,000 investment. The
company’s first-year ROI would become

Assume that company can repeatedly save $7,000 by making a $25,000
investment. The company’s first-year ROI would become

The higher the ROI, the better. Using an ROI in this way, a company can compare
two or more investment opportunities.
Traditionally, before investing in a large data center, a company would
determine the ROI. Because one typically does not have a large investment
within cloud-based solutions (cloud solutions normally have monthly
operational expenses), calculating the ROI for cloud-computing solutions can be
difficult.
Company IT personnel will instead evaluate the benefits of the monthly cloud
investment based on factors including the following:
• Rapid scalability: Customers can make and implement scaling decisions
quickly.
• Reduced total cost of ownership: By leveraging the cloud-service provider’s
economies of scale, the customer’s total cost of ownership will normally be less.
• Improved business continuity and disaster recovery: The cloud becomes
an operational insurance policy for fail-safe operations.
• Increased cost controls: Customers normally pay only for the resources they
consume and may be able to align that increased resource consumption with
increased revenues.
• Enhanced ability to “right-size”: Companies can monitor system utilization
and scale resource use up or down to align resources with demand.
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To help IT personnel estimate the ROI for using cloud-based services,
www.GetApp.com provides a cloud computing migration calculator, as shown in
FIGURE 16-4. Using the calculator, you enter your current costs for various IT
components, the facility, operating system licenses, servers, data storage, and
more. Then, for each item, you specify the potential cost reduction realized by
using the cloud. The calculator, in turn, determines your potential savings and
ROI for the cloud migration.
Exercise Assume you must deploy a system with the following attributes:
• 7,200 hours of computing capability—24/7 monthly operations
• 100 GB of relational database support
• 1 TB of disk storage
• 5 GB of data transfer

FIGURE 16-4 The cloud computing ROI calculator.
Assume you have the current data center expenses:
• Facilities rent: $100,000 a year

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• Power/AC: $5,000 a month
• System administration: $250,000 a year
• Operating system server site licenses: $25,000 a year
• Network costs: $80,000 a year
• Disk storage costs: $25,000 a year
• Disaster recovery: $50,000 a year
• Developer costs: $400,000 a year
• Operational IT costs: $150,000 a year
Use the www.GetApp.com ROI calculator to determine the corresponding
monthly operating expenses and potential cloud savings.
Web Resources For specifics on calculating and analyzing the ROI for cloud
computing, visit www.CloudBookContent.com/Chapter16/index.html.
Profit Margins
A company’s profit margin, often simply called the margin, is a ratio of the
company’s income to revenue:
Profit Margin = (Income / Revenue) * 100
Assume, for example, a company has $500,000 of revenue and the following
expenses:

To calculate the company’s income or profit, you simply subtract the expenses
from the revenues:

Then, you can calculate the company’s profit margin as follows:

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Assume that by migrating its IT data center to the cloud, the company can reduce
its IT expenses to $75,000. The company’s margin, in turn, would improve as
follows:

One way to determine the benefit of moving to the cloud is to evaluate a
company’s on-site profit margins compared with the cloud-based profit margins.
Moore’s Law and the Cloud
Gordon Moore, one of the cofounders of Intel, identified a computing trend
during the 1960s that remains true today:
The number of transistors that can be placed on an integrated circuit doubles every
two years.
This observation is known as Moore’s law. We find that computing power and
disk storage capacity also double at nearly this rate. The result is that a capital
investment in computing devices has a very short effective life expectancy. The
systems we buy today may be only half as fast as those we will purchase two to
three years from now.
By shifting computer resources to the cloud, companies eliminate the need to
update their own data center equipment, which may drive a considerable cost
savings. Today, within the cloud environment, you can think of the services
provided (SaaS, PaaS, and IaaS) as a commodity.
Understanding Right-Sizing

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A goal of most computer systems is high CPU utilization. If CPUs have low
activity, processing resources are wasted. However, if a CPU is running at 100
percent, performance will suffer due to increased process switching. Thus, the
goal is a high level of utilization, but not maximum utilization.
As a company moves new products to the cloud, it has no way of knowing what
the level of utilization will be. If a company launches solutions with too few
servers, the solution’s performance will suffer. If a company provides more
servers than necessary, it will pay for unused resources.
The virtual and easily scalable nature of the cloud makes it easy for companies to
“right-size” their resource needs. Right-sizing is the process of aligning
computing resources (processors, servers, disk capacity, and so on) with user
demand and requirements. With the company’s optimal CPU utilization come
optimal related costs within the cloud’s pay-as-you-go environment. Within the
cloud environment, a customer may pay for one hour of processing by 50
servers—or the same for 50 hours of processing by one server. In other words, it
is easy to “right-size.”
Defining a Large Data Center
Throughout this chapter, we have referred to “large data centers” and their
economies of scale. A large data center may house from 500,000 to several
million square feet of space, and may initially cost several billion dollars. FIGURE
16-5 shows the I/O Data Center website. Visit the site to gain a better
understanding of the size and scope of a large data center.

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FIGURE 16-5 The I/O Data Center website.
Other Economic Key Performance Indicators
Beyond the traditional total cost of ownership, the shift from capital to
operational expenses, and ROI, TABLE 16-1 describes several key performance
indicators that should be considered before initiating a cloud deployment.
TABLE 16-1 ADDITIONAL KEY PERFORMANCE INDICATORS TO CONSIDER
Metric/Indicator Measure

System availability Through system redundancy and colocation, cloud-based service
providers typically provide 99.9 percent uptime and system
availability. Because cloud service providers maintain the operating
system and support software, companies normally experience little
downtime for system patch or version upgrades. Most cloud service

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providers guarantee system availability as part of their SLA.

Processor utilization Because cloud-based providers can scale processors on demand, a
company does not have to deploy a large number of processors to
meet potential demand. Instead, a company can estimate initial
demand and then scale up or down accordingly and dynamically to
drive a more efficient processor utilization.

Time-of-day utilization Many applications experience spikes during specific times of the
day. For example, a human resource (HR) solution will normally
experience traffic during business hours and then little traffic during
off times. Because cloud service providers can dynamically scale
resources to meet user demand, the solutions can scale processor
power up or down as necessary throughout the day.

Resource
demand/utilization
(RAM, disk and
database)
Many companies find that their resource demand models their
time-of-day utilization. A cloud service provider may be able to
scale resources to best align user demand with costs.

Time to market Most companies can turn on a cloud service solution immediately,
without the cost and time involved in establishing a data center
(small or large); acquiring, installing, and testing hardware and
software; and hiring system administrators.

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Opportunity costs There are costs associated with an activity’s potential that a
company must forgo when selecting an alterative. For example, if a
company invests in an on-site data center, the company may have to
forgo an advertising and marketing initiative that could increase
revenues.

User experience Hiring, onboarding, and training skilled IT employees is usually an
expensive investment. Most cloud service providers have an
experienced team of administrators and security personnel.

Market disruption Being first to market can have disruptive benefits. By utilizing
cloud-based resources, a company may become more nimble and
faster to market than a company that integrates an on-site data
center.

Marketing the Cloud
As with all products and services, the rate at which users migrate to the cloud
follows a common pattern. FIGURE 16-6 illustrates a typical adoption cycle. It is
interesting to note that the innovators and early adopters comprise only 50
percent of the eventual market. Judged by that, the cloud still experiences
significant growth from the late majority and laggards.

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FIGURE 16-6 The cloud’s market adoption cycle is similar to that of most new
product and service offerings.
CHAPTER SUMMARY
The cloud brings new business models and economics. By moving to
infrastructure as a service, large companies can save costs, reduce staff, and
improve system scalability. Through SaaS and PaaS, small companies are
leveraging pay-on-demand models to “right-size” their computing needs quickly
and cost-effectively. This chapter examined the cloud business model and related
economic opportunities. Specifically, you learned how companies are converting
large capital expenditures to monthly operational expenses and how the cloud
service provider’s economies of scale result in savings to companies that pay for
the cloud services.
KEY TERMS
Capital expenditures (CAPEX)
Economics
Economies of scale
Key performance indicators
Operational expenses (OPEX)

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Profit margin
Return on investment (ROI)
Right-sizing
Total cost of ownership (TCO)
CHAPTER REVIEW
1. Define and describe total cost of ownership. List at least 10 items to consider
when determining a data center’s total cost of ownership.
2. Define and describe a capital expense. How are capital expenses different from
operational expenses?
3. Define and describe economies of scale and provide a cloud-based example.
4. Define and describe “right-sizing” as it pertains to cloud computing.
5. Define Moore’s law and discus how it might influence cloud migration.
6. Given company revenues of $2.5 million and expenses of $2.1 million, calculate
the company’s profit and profit margin.

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chapter 17
Designing Cloud-Based Solutions
THROUGHOUT THIS BOOK, WE have looked at a variety of cloud-related issues,
from scalability to security to economics and business models. In Chapter 18,
Coding Cloud-Based Applications, we will build and deploy several simple
cloud-based solutions. In this chapter, we look at many design considerations a
developer should consider when designing a cloud-based solution.
Learning Objectives
This chapter examines cloud-based solution designs. By the time you finish this
chapter, you will be able to do the following:
• Compare and contrast functional and nonfunctional system requirements.
• Understand why developers should delay selecting an implementation
platform during the design phase.
• Discuss considerations designers should evaluate when they design a system
to meet specific nonfunctional requirements.
Revisit the System Requirements
Before you begin the design process, you must ensure that you have a complete
set of system requirements. If the system requirements were defined by another
individual or group, you should review the requirements and then walk through
your understanding of them with the group and ideally the stakeholder who
served as the expert for the requirements specification. Identifying errors,
omissions, and misunderstandings early in the design process will save
considerable time and money later.
System requirements fall into one of two categories: functional requirements
and nonfunctional requirements. The functional requirements specify what the
system does—that is, the specific tasks the system will perform. Normally, the
functional requirements are provided by the system or business analyst to the
designer within the specification of the things that the system needs to do. In
contrast, nonfunctional requirements specify how the system will work behind
the scenes. Nonfunctional requirements are often called quality requirements
and include common factors such as performance, reliability, and

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maintainability. As a designer with a strong working knowledge of the cloud
environment, you can exhibit considerable influence on the system’s design to
meet the nonfunctional requirements. Much of this chapter examines specific
design considerations for nonfunctional requirements.
When to Select a Development Environment
Many developers want to be quick to select the platform upon which they will
develop and implement the solution. That is, they want to start thinking about
.Net, Linux, C#, or Ruby. When designing solutions, however, you should hold off
on the implementation details as long as you can. Your design goal is to
understand the requirements (functional and nonfunctional) fully and then to
evaluate alternative solutions and implementations. If you focus too soon on
platform capabilities, the platform may begin to dictate your design, not only for
a specific requirement, but also for the requirements that follow.
Knowing the capabilities of a platform is important; but it is wise to hold off
deciding on one until you have your requirements and potential solutions on the
table.
Design Is a Give-and-Take Process
Designing a system is challenging. Budgets and time constraints mean you cannot
solve every problem. That said, you need to consider the common design issues
and then help the stakeholders prioritize the solutions they desire. As you
evaluate your system’s nonfunctional requirements, remember the 80/20 rule
(Often 80 percent of a program’s processing takes place within 20 percent of the
code). You will want to focus your system design on the issues that will produce
the greatest impact for the stakeholders.
Designing for Accessibility
Depending on the processing a system performs, a designer may need to create
an interface that maximizes user access or may have to lock down the system and
control which users can access specific features. For a public solution, such as a
consumer website, maximizing user access not only makes great marketing
sense, but also may be required by law (see the Americans with Disabilities Act
website at www.ada.gov). In contrast, for a secure site, controlling user access
can range from ensuring the security of the login process to some type of
biometric user authentication.
CASE 17-1 VOICEPAY CLOUD-BASED USER AUTHENTICATION

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Authenticating a mobile device user can be challenging. Often, mobile users will
preconfigure different pages to “remember” them in order to simplify login
processes. If a user loses the device, another person may be able to access those
pages. VoicePay, shown in FIGURE 17-1, has an interesting voice-based biometric
authentication capability. When a user wants to make a purchase or log in to a
specific site, the user calls VoicePay and speaks. The system, in turn, uses the
user’s voice profile to authenticate him or her. The user does not have to provide
a username, password, or other confidential information—all he or she has to do
is speak. As mobile device use continues to grow exponentially, biometric
solutions such as those offered by VoicePay will become mainstream.
Exercise List and describe other potential uses for voice-based user
authentication.
Web Resources For more information on VoicePay, visit
www.CloudBookContent.com/Chapter17/index.html.

FIGURE 17-1 Using biometric voice recognition to identify users at VoicePay.
CASE 17-2 WEB ACCESSIBILITY INITIATIVE
As discussed, designing for user access is not just good business—for most
web-based companies, it is a matter of law. To help designers understand
potential solutions and user needs, the World Wide Web Consortium (W3C) has
developed guidelines within its Web Accessibility Initiative pages, as shown in

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FIGURE 17-2. Before you begin a user interface design, you should review these
accessibility issues and requirements.
Exercise Research and discuss lawsuits that companies have lost for failing to
support web accessibility for all users.
Web Resources For more information on the W3C Web Accessibility Initiative,
visit www.CloudBookContent.com/Chapter17/index.html.

FIGURE 17-2 Specifics on designing web-based solutions to increase
accessibility across a spectrum of users.
Designing for Audit
Chapter 15, Governing the Cloud, examined the cloud’s impact upon the IT
governance process. As you design a cloud-based solution, you must first identify
critical processing points at which you will want to place an internal control to
confirm that the solution’s processing is correct and free from outside
manipulation. You may design such controls to be active, meaning the code may
generate a processing exception should unexpected results occur; or, the control
may be passive, possibly logging events to a file or saving snapshots of data.
In either case, it is important that you identify your audit processing needs early
so that the appropriate controls can be integrated into the implementation
process and you can discuss and confirm your processing needs with a potential
cloud-solution provider.

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Designing for Availability
As part of their service-level agreement (SLA), most cloud-based providers
guarantee system availability, normally specifying a percentage of uptime, such
as 99.9 percent. For most applications, 99.9 percent uptime is acceptable (this
means that the system is down 0.1 percent of the time, or 525 minutes each
year). It is important that you identify your system’s uptime requirement and
then, likely through the use of redundant colocated servers, design a solution
that meets your needs.
Designing for Backup
With the myriad of inexpensive high-capacity data-storage solutions available
within the cloud, loss of user data should not occur. If you are designing your
own solution, you must consider not only ways to back up your data (and
databases), but also the impact of each method on your system availability
should you need to bring down the system to restore a backup.
Designing redundant data-storage solutions will always involve a
cost-versus-risk trade-off. The issue is not whether you back up data—data
backups should be a given, always. The issue is aligning acceptable risk
mitigation with cost.
If you are designing a solution for which a third party (such as a software as a
solution (SaaS) provider) will manage your data, you need to understand the
company’s backup policies and procedures, and even then you will probably still
want to integrate your own.
Designing for Existing and Future Capacity
Chapter 19, Application Scalability, examines the capacity planning process. If
you are moving an existing on-site solution to the cloud, you should monitor the
application closely to fully understand its processing attributes, such as user
demand, CPU utilization, RAM use, and data-storage consumption. Knowing your
system’s current resource use, you can better guess (it is difficult to predict
system demand accurately) your system’s cloud resource needs.
With this knowledge, you can design for scalability—the ease of integrating
additional computing resources. As you will learn in Chapter 19, there are two
primary ways you can scale an application. First, you can scale the application up
(called vertical scaling) by moving the application to a faster, more powerful
processor. Second, you can scale an application out (called horizontal scaling) by
distributing different tasks across different servers. As you design a solution, you

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should identify opportunities to leverage horizontal scaling. At a minimum, you
should design your solution in such a way that you do not restrict future
horizontal scaling potential.
Designing for Configuration Management
Ideally, cloud-based solutions may be used at any time, from any place, with any
device. In practice, however, this means that developers must consider a variety
of operating systems, browsers, and device-specific GUIs. Operating systems and
browsers often require patches to address security issues, and, eventually, each
will face new version releases. If you are designing your own solution, you will
want to layer configuration solutions on top of your system. In this way, you will
reduce the impact to a computer-based user when changes are made to a
handheld device interface or vice versa.
If your system design includes the use of an SaaS provider, you need to know that
company’s patch management and versioning policies and procedures.
Designing for Deployment
Chapter 8, Virtualization, examined ways that desktop virtualization is changing
how solutions are delivered. From an operating system on demand, to thin client
(browser-based) solutions, developers have a myriad of ways to deploy a system.
As you design a solution, you should identify each potential user type and its
environment attributes (such as operating system, device type, and browser).
Then, you need to consider not only how you will deploy the initial solution to
the user, but also how you will deploy system upgrades.
Designing for Disaster Recovery
Chapter 10, Disaster Recovery and Business Continuity and the Cloud, examined
considerations for reducing the risk from a disaster and increasing the likelihood
that a business is able to continue operating after such an event. When designing
a solution with respect to disaster recovery and business continuity, you must
balance risks and costs. It is likely impossible and unnecessary to protect a
system from all potential events. Instead, you must determine each event’s
likelihood and business impact and then seek to provide an affordable solution
that mitigates risks. Fortunately, the cloud’s affordable and distributable
resources provide developers with considerable flexibility.
Designing for the Environment (Green Computing)

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Green computing describes environmentally friendly IT operations. For
example, replacing an application that prints reams of paper reports with a
browser-based performance dashboard is an example of a green-computing
initiative. As you have learned, within a data center, the biggest environmental
impact is the power consumption to drive devices and air conditioners. As more
companies migrate to platform as a service (PaaS) and infrastructure as a service
(IaaS) providers, many smaller (and possibly less efficient) data centers are
being accumulated into larger, state-of-the-art facilities.
As the capabilities of cloud-based collaboration tools continue to increase, travel
for face-to-face meetings will decrease, resulting in a lower business-related
carbon footprint. That said, as solutions are made available any place, any time,
and from any device, the net result is a huge number of handheld devices that are
never powered off.
As green-computing practices continue to emerge, designers will be pressured to
consider the environmental impact of their designs.
Designing for Interoperability
Cloud-based solutions are emerging for a wide range of applications. Whereas
just a few years ago, a company might have used one cloud-based solution for a
customer relationship management (CRM) requirement, or a solution for an HR
application, today, many companies use a wide range of cloud-based solutions.
To simplify the user interaction with such solutions, many companies strive to
integrate the solutions and often even to share data across solutions. In the past,
companies would buy and install middleware software to facilitate the exchange
of data between solutions. Today, there are cloud-based middleware solutions
that let companies tie together two cloud-based solutions, often without the need
for programming development.
As you design cloud-based solutions, or when you work with an SaaS provider,
consider ways you may need to integrate data between applications and then
design accordingly.
Designing for Maintainability
Designing and building software solutions is an expensive process. Usually, the
most costly phase of the software development life cycle is the system
maintenance phase. To maximize code reuse and to increase code
maintainability, software engineers are taught to create highly functional
(cohesive) and independent (loosely coupled) software modules. Chapter 11,

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Service-Oriented Architecture, discussed the role of cloud-based web services to
make solutions readily available to a variety of applications. By decomposing an
application into highly cohesive, loosely coupled modules and then deploying
those solutions to applications such as web services, developers not only
increase component reuse, but they also make the resulting systems easier to
maintain by centralizing key processing as a distributed solution.
If you are using an SaaS solution, you need to keep the long-term nature of your
relationship in mind. Many people argue that cloud solutions are initially
inexpensive but may cost you more in the long run.
Designing for Performance
Speed matters. Across the cloud, you can find a myriad of companies that will
monitor your system performance and will estimate a percentage of users who
will leave your site if the pages do not load within 2 to 3 seconds. As you design
the performance aspects of your solution, first you need to identify the 20
percent of your system that will be used 80 percent of the time. Then, you need
to focus your initial performance optimizations there. Chapter 19, Application
Scalability, looks at ways you can scale a solution to meet user demand.
Designing for performance and designing for scalability are two different issues.
Designing for performance means optimizing what you have. Designing for
scalability means designing for the future integration of additional computing
resources. The following are some ways that you can design for performance:
• Reduce the use of graphics on key pages.
• Optimize the graphics file format for all images.
• Compress large text blocks before downloading the text to a browser.
• Utilize data and application caching.
• Fine-tune disk and database I/O operations.
• Reduce, when possible, network operations.
• Fine-tune secure data communication transactions.
As you design solutions, evaluate them for potential bottlenecks as well as for
optimization points. Understand that you may not, due to time or budget
constraints, have the ability to optimize everything.
Designing for Price

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Budgets are a fact of life. As you design, you must be aware that your design
decisions have financial implications. A solution that was inexpensive to deploy
may prove costly to maintain or vice versa. Just as you would consider the
performance or security aspects of each component you design, you must also
consider each component’s short-term and long-term budget impact.
Designing for Privacy
As discussed throughout this book, many users are not comfortable with the idea
of putting their data in the cloud. Cloud-based solutions must protect a user’s
data privacy. If you are developing a healthcare solution with HIPAA
requirements, an education solution with FERPA requirements, or an
e-commerce solution that stores credit card information, you will need to design
your solution in a way that protects data not only from external access, but also
from internal users such as developers and administrators.
Most designers understand the importance of backing up user data and
replicating key databases. It is important to note, however, that each data backup
creates a potential opportunity for a user, administrator, or hacker to gain access
to the data.
Designing for Portability
Portability is a measure of the ease with which a solution can be moved,
typically from one platform to another. Ideally, you should design your system so
that you can easily move the solution from one cloud provider to another. Many
developers argue that by using open source tools to create an application you
increase the application’s portability. In reality, within the cloud, developers
using .Net will find many hosting opportunities beyond Microsoft—it’s a big
cloud and solution providers want to service all developers. If you are designing
your own solutions, be aware that using a provider-specific application program
interface (API), which may not be available through other providers, may create
a form of vendor lock-in. Likewise, if you use an SaaS provider, be aware that
each unique or custom capability integrated into your solution may bind you to
that provider.
Designing for Recovery
We have discussed the need to design a solution to support disaster recovery and
business continuity needs. Additionally, you should design your solution with
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server failure, user error, power outages, and so on. Your recovery design should
tie closely to your backup design and your system redundancy design.
Designing for Reliability
Computing devices (disks, servers, routers, and so on) will eventually fail. You
have learned that many devices have an associated mean time between failures
(MTBF) attribute that you can use to estimate the device’s potential life
expectancy. As you design your solutions, you must identify potential signal
points of failure and then design potential system redundancy or establish an
acceptable system downtime.
Designing for Response Time
When you design a solution, you should keep the user experience in mind. As
discussed, users are conditioned to expect fast system response. In fact, a large
percentage of users will leave a site if they have to wait more than a few seconds
for pages to download and display. As you design a solution, you need to
consider not only the page download times, but also the system response time
after a user performs an operation, such as submitting a form. Across the cloud,
there are companies that specialize in testing the user experience. These
companies will evaluate a system from different geographic locations, using
different connection speeds, and with a variety of browsers. Your response time
design efforts may be closely related to your site’s capacity plan design.
Designing for Robustness
Robustness is a measure of a site’s ability to continue operations in the event of
an error or system failure, such as a server failure or database error. Again, as
you design you should strive to identify and eliminate single points of failure.
Furthermore, you should consider automating a system resource utilization
monitor that alerts administrators before a system’s resources become critically
low.
Designing for Security
Chapter 9, Securing the Cloud, looks at a variety of cloud-based security issues
developers must consider, including the following:
• Software patch installations and software version management
• HR vetting of cloud-based personnel
• Early awareness of security incidents and appropriate responses

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• Data privacy issues and considerations
• Jurisdictional issues for a remote cloud-service provider
• Multitenant solution issues
• Cloud-provider failure or collapse
• Defense mechanisms for common low-level network attacks
• Data wiping for shared-storage space
• Physical security considerations
For each component you design, you must evaluate the component’s potential
security exposure. Again, in some cases you will need to balance risk and cost.
Designing for Testability
Cloud-based solutions will likely have a large number of functional and
nonfunctional requirements. As you design a solution, you need to keep in mind
how you will test various aspects of your design. As you might guess, the
system’s nonfunctional requirements are often the most difficult to test.
Depending on a system component’s purpose and functionality, some developers
will use a methodology called test-driven design by which they first design and
implement one or more test cases and then build a solution that can satisfy the
test.
Designing for Usability
To be of use a system must be usable. Usability, in the world of IT, is understood
as a measure of a system’s ease of use. As you design a solution, you must keep
the user foremost in your mind. Because of the importance of meeting system
usability requirements, many designers will model or create a prototype of the
user experience so they can receive user feedback early in the design process.
CHAPTER SUMMARY
Cloud-based systems will have functional requirements, which specify the tasks
the system must perform, and nonfunctional requirements, which define the
behind-the-scenes operational requirements the system must satisfy. This
chapter focused primarily on considerations a designer must evaluate when
addressing a system’s nonfunctional requirements for a cloud-based solution.
Designers must balance a large number of operational requirements with budget
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and then work with the stakeholders to focus on the requirements that will have
the biggest positive ROI.
KEY TERMS
Functional requirements
Green computing
Middleware
Nonfunctional requirements
Portability
System requirements
Usability
CHAPTER REVIEW
1. Compare and contrast functional and nonfunctional requirements and provide
an example of each.
2. Discuss why a designer should avoid selecting an implementation platform for
as long as possible during the design process.
3. Discuss various trade-offs a designer may need to make with respect to
nonfunctional requirements.
4. Discuss why the system maintenance phase is often the most expensive phase
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chapter 18
Coding Cloud-Based Applications
BEHIND THE SCENES, DEVELOPERS who create new cloud-based applications
or who move existing applications to the cloud are truly driving the cloud’s
explosive growth. Creating a cloud-based application is very similar to building a
traditional web-based application. Developers normally use a programing
language such as PHP, Ruby, Perl, Pty, or C#, along with HTML and CSS, and a
database. As discussed in Chapter 3, Platform as a Service (PaaS), many
cloud-solution providers offer tools that developers need to build and deploy a
solution. In this chapter, we will look at two of the most widely used developer
platforms: Google App Engine and Windows Azure. In addition, many companies
now offer tools that nonprogrammers can use to create and display a solution
without coding. We’ll look at one such tool, Yahoo! Pipes, and its ability to help
users create a mashup.
Learning Objectives
This chapter examines coding cloud-based applications. By the time you finish
this chapter, you will be able to do the following:
• Use Yahoo! Pipes to create a mashup.
• Create and deploy a cloud-based application using Google App Engine.
• Create and deploy a cloud-based application using Windows Azure.
Creating a Mashup Using Yahoo! Pipes
Across the cloud, different sites provide different content offerings. A mashup is a
page that combines several such independent pieces of content. As shown in
FIGURE 18-1, a mashup may be created and delivered by a server, or a browser
may use JavaScript to combine the content.

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FIGURE 18-1 A mashup combines content from several sources onto the same
page.
Yahoo! Pipes is a cloud-based application that provides a graphical user
interface (GUI) that programmers can use to combine content (create a mashup)
by dragging and dropping content sources onto a canvas. Later, when a user
views a pipe, the user will see the corresponding content. FIGURE 18-2, for
example, illustrates the user view of a pipe that combines news feeds from a
wide range of sources.
Pipes are so named because they let developers connect the data flowing from
one source into the data processed by another. FIGURE 18-3, for example,
illustrates the pipes to create the news feed previously shown.

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FIGURE 18-2 Yahoo! Pipes allows developers to combine content from multiple
sources into a single mashup.

FIGURE 18-3 Yahoo! Pipes flow the content from one source into the input of a
second source.
Similarly, FIGURE 18-4 illustrates a pipe that combines movie reviews with
photos from Flickr and videos from YouTube.

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FIGURE 18-4 Using Yahoo! Pipes to mash content from several sites to create a
movie review.

FIGURE 18-5 Using Yahoo! Pipes to combine text, image, and video data into a
user interface.

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Again, the developer created this pipe by connecting data sources, as shown in
FIGURE 18-5.
Creating a Simple Yahoo! Pipe
To create your own Yahoo! Pipe, visit pipes.yahoo.com, as shown in FIGURE 18-6.

FIGURE 18-6 To create a pipe, start at pipes.yahoo.com.

FIGURE 18-7 To create a Yahoo! Pipe, users drag and connect data sources
within the Yahoo! Pipe canvas.

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Within the page, log in to Yahoo! and click the Create Pipe button. Your browser,
in turn, will display the pipe canvas and the data sources that you can use to
create your pipe, as shown in FIGURE 18-7.
In this example, you will create a pipe called FindIt, which prompts the user to
enter an item (store, restaurant, or other destination) and a geographic area
(city, state, or zip code) as shown in FIGURE 18-8.

FIGURE 18-8 The user interface of a Yahoo! Pipe, which prompts the user for an
item and location.

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FIGURE 18-9 Using a Yahoo! Pipe to display locations that offer pizza.
After the user types in the item and location, the page will display the location of
items that match. For example, FIGURE 18-9 lists locations within Prescott,
Arizona, that offer pizza.
To create your Yahoo! Pipe, perform the following steps:
1. From the left side of the screen, drag a Text Input object from the User Input
group onto the canvas.
2. Label the Name of the Text Input object as Item and set the prompt to Item.
3. From the Sources group, drag a Yahoo! local object onto the canvas. Within the
object, change the “Within” field to “20 miles.”
4. Using your mouse, drag the circle found at the bottom of the Text Input box
into the Find field of the Yahoo! Local box. The canvas will display a pipe, as
shown in FIGURE 18-10.
5. From the Location group, drag and drop a Location Build object onto the
canvas.
6. From the User Input group, drag another Text Input object onto the canvas.
Label the object’s Name as Location and set the prompt to Location.

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7. Using your mouse, drag the circle from the new text box into the Location field
of the Location Builder object. The canvas will display a second pipe, as shown in
FIGURE 18-11.

Figure 18-10 Using a pipe to connect objects within a Yahoo! Pipe.

FIGURE 18-11 Creating a second pipe to connect objects.

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8. Using your mouse, drag the circle from the Yahoo! Location box to the Pipe
Output object. The canvas will display the third and final pipe, as shown in FIGURE
18-12.

FIGURE 18-12 Using a pipe to specify the user output.
9. Click the Save button and specify a name under which to save your pipe.
10. Click the Properties button. Your browser will display a link that you can use
to run your pipe (display the pipe’s output).
Later, if you share the URL to your pipe with other users, they can use it to search
for a wide range of items. FIGURE 18-13, for example, shows the pipe’s input
screen and output results for pipe search.
Using Google App Engine
Using Google App Engine, developers can deploy applications that run on the
Google infrastructure. Google maintains the servers, scales the applications, and
performs the behind-the-scenes server administration. Developers can get
started with Google App Engine at no charge. As an application’s demand
increases, Google allows developers to pay only for the resources they consume.
Developers normally build Google App Engine solutions using Java, Python, or
PHP.

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FIGURE 18-13 Displaying the results of a Yahoo! Pipe.
Creating a Hello, World! Application with Google App Engine
To start, create the following simple Python application, which displays the text
“Hello, world!” to the user:
print “Content-type: text/html\n\n”
print “Hello, world!”
After you have the application working locally, you can upload the application to
the Google App Engine. Visit appengine.google.com and log in to a Google
account. Then select the Create Application button. You may need to authenticate
yourself to Google further before you can continue.
Downloading the Google App Engine Software Development Kit
Depending on the programming language you are using to develop your
application, you will need to download and install the corresponding Google App
Engine software development kit (SDK). For this example, you would
download the Python SDK. The SDK, in turn, provides utility programs you can
use to upload your program into the Google App Engine.
Deploying a Simple Google App Engine Example

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To begin, open a command line window as shown in FIGURE 18-14 and locate the
file folder that contains the appcfg.py script, which was created by the SDK
installation.

FIGURE 18-14 Using a command line window, locate the appcfg.py script that
you will use to upload your Python script to the Google App Engine.
For this example, create a folder within the folder that contains appcfg.py named
Hello, within which you store the Hello.py script:
print “Content-type: text/html\n\n”
print “Hello, world!”
Next, within the same folder, create a file named app.yaml, which Google will use
to configure your application. Use the following script, replacing the value
2a2a2a2a2a2abbb with the application ID you received from Google:

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Then, run the appcfg.py script, as shown in FIGURE 18-15, to upload your
application.
You can then test your application from Google’s appspot website, as shown in
FIGURE 18-16.

FIGURE 18-15 For a Python script, the appcfg.py script will upload the
application into the Google App Engine.

FIGURE 18-16 Running a Python script deployed to the Google App Engine.
Creating a More Advanced Google App Engine Application
To assist developers in creating applications, Google provides a variety of
application program interfaces (APIs). The following code uses a Google API to
display specifics about the current user:

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If you place this code into your previous Hello.py script, you can then rerun the
previous appcfg.py script to upload the application into the Google App Engine.
When you later run the script, Google will prompt you to log in. Then the page
will display your user specifics, as shown in FIGURE 18-17.
Creating a Windows Azure “Hello, World!” Application
For .Net developers, creating a Windows Azure application is a natural extension
of their previous ASP.NET development. The developers will use the Visual
Studio to create and deploy their applications. Eventually, support for Windows

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Azure will be integrated into Visual Studio. At the time of this writing, however,
developers must download and install a Windows Azure software development
kit as well as tools for Visual Studio. In addition, developers must register at the
Windows Azure site—which they can do free of charge. At the Windows Azure
site, developers will find tutorials to guide them through the process of creating
and deploying a cloud-based application.

FIGURE 18-17 Displaying a user’s Google specifics.

FIGURE 18-18 Creating a cloud-based project hosted on Windows Azure.
After you install the Windows Azure SDK and Visual Studio support tools, start
Visual Studio and create a new project. Within Visual Studio’s list of installed
templates, select Cloud, as shown in FIGURE 18-18.
Within the New Windows Azure Project dialog box, select the ASP.NET Web Role
entry, as shown in FIGURE 18-19.

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FIGURE 18-19 Using the ASP.NET Web Role to create your cloud application.

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FIGURE 18-20 Modify the Default.aspx file’s contents and screen display.
Next, within Visual Studio, edit the Default.aspx file to change the text from
Welcome to ASP.NET! to Welcome to the Cloud, as shown in FIGURE 18-20.
Select the Project menu Package option. Visual Studio will display the Package
Windows Azure Application dialog box. Select OK. Your screen will display a
window that contains the package files, as shown in FIGURE 18-21. Note the name
of the folder within which the package files reside. You will need the files later to
upload your application to Windows Azure.

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FIGURE 18-21 Displaying package files within Visual Studio.

FIGURE 18-22 To upload a program, you must first log in to the Windows Azure
site.

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FIGURE 18-23 Providing Windows Azure with specifics about your application.
Click the New Hosted Services button. Your screen will display a dialog box
similar to that shown in FIGURE 18-23, which you must complete.
Using the folders within which you stored the application’s package files,
complete the dialog box fields. Windows Azure, in turn, will begin the upload
process, eventually displaying specifics about the application, as shown in FIGURE
18-24.
Using the URL provided in the Windows Azure project specifics, deploy your
application. Your browser, in turn, should display the cloud-hello message, as
shown in FIGURE 18-25.

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FIGURE 18-24 Loading an application into the Windows Azure platform.

FIGURE 18-25 Successfully deploying an application within Windows Azure.
CHAPTER SUMMARY

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Cloud use is driven by new applications, which means that developers who
create new cloud-based applications or who move existing applications to the
cloud are the ones truly driving the cloud’s explosive growth. In general, creating
a cloud-based application is similar to building a traditional web-based
application. That is, developers will use a programing language such as PHP,
Ruby, Perl, Pty, or C#, along with HTML and CSS, and a database. In addition,
many cloud-solution providers offer tools that developers need to build and
deploy a solution without having to code. Such applications should accelerate the
rate at which applications enter the cloud. In this chapter, you learned how to
use Google App Engine and Windows Azure to deploy a cloud-based application.
In addition, you learned how Yahoo! Pipes allows users to create mashups
without the need for code.
KEY TERMS
Google App Engine
Software development kit (SDK)
Yahoo! Pipes
CHAPTER REVIEW
1. Using Yahoo! Pipes, create a pipe that displays the names of pizza restaurants
within a given zip code.
2. Using Google App Engine, create a page that displays the following Python
script:
print “Content-type: text/html\n\n”
print “Cloud Computing, Chapter 18”

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chapter 19
Application Scalability
SCALABILITY REFERS TO AN application’s ability to add or remove resources
dynamically based on user demand. Throughout this book, you have learned that
one of the greatest advantages of cloud-based applications is their ability to scale.
Anticipating user demand is often a “best guess” process. In the past, developers
had to release site resources (servers, CPUs, disk space) capable of meeting the
anticipated initial user demand, plus growth. Often developers could not
accurately project the demand, and frequently they released too few or too many
resources.
Learning Objectives
This chapter examines the resource-scaling process. By the time you finish this
chapter, you will be able to do the following:
• Define and describe scalability.
• Define and describe the Pareto principle.
• Compare and contrast scaling up and scaling out.
• Understand how the law of diminishing returns applies to the scalability
process.
• Describe the importance of understanding a site’s database read/write ratio.
• Compare and contrast scalability and capacity planning.
• Understand how complexity can reduce scalability.
CASE 19-1 THE PARETO PRINCIPLE (80/20 RULE)
Whether you are developing code, monitoring system utilization, or debugging
an application, you need to consider the Pareto principle, also known as the
80/20 rule, or the rule of the vital few and the trivial many. The Pareto principle
accurately describes different scenarios such as the following:
• 80 percent of development time is spent on 20 percent of the code.

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• 80 percent of errors reside in 20 percent of the code.
• 80 percent of CPU processing time is spent within 20 percent of the code.
• 80 percent of system use comes from 20 percent of the users.
If you consider the Pareto principle, you may find that you do not need to
optimize all of an application’s code. Instead, you can focus your effort on 20
percent of the code that users use most often.
Exercise Consider system performance monitoring. What other relationships,
such as disk space use or database space use, may relate to the Pareto principle?
Web Resources For more information on the Pareto principle, visit
www.CloudBookContent.com/Chapter19/index.html.
Reviewing the Load-Balancing Process
Cloud-based solutions should scale on demand. This means that if an
application’s user demand reaches a specific threshold, one or more servers
should be added dynamically to support the application. Likewise, when the
demand decreases, the application should scale down its resource use. When an
application uses multiple servers, one server, as shown in FIGURE 19-1, must
perform the task of load balancing.
The load-balancing server receives client requests and distributes each request
to one of the available servers. To determine which server gets the request, the
load balancer may use a round-robin technique, a random algorithm, or a more
complex technique based upon each server’s capacity and current workload. For
an application to exploit load balancing fully, the application developers must
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FIGURE 19-1 The load-balancing server distributes workload across an
application’s server resources.
CASE 19-2 GANGLIA MONITORING SYSTEM
If you are using Linux-based servers, you should consider deploying the Ganglia
Monitoring System to monitor your system use. Ganglia is an open-source project
created at the University of California, Berkeley. The software monitors and
graphically displays the system utilization, as shown in FIGURE 19-2.

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FIGURE 19-2 Monitoring system utilization using the Ganglia Monitoring
System.
Exercise Examine the Ganglia Monitoring System. Which of the system’s features
are most critical to cloud administrators? Why?
Web Resources For more information on the Ganglia Monitoring System, visit
www.CloudBookContent.com/Chapter19/index.html.
Designing for Scalability
Often developers take one of two extremes with respect to designing for
scalability—they do not support scaling or they try to support unlimited scaling.
In general, developers should focus their effort somewhere in the middle. In
other words, they should design and build the application with the expectation
that it will scale to a point, possibly beyond reasonable expectations. It is
important to note that most applications do not experience, and therefore do not
need to support, overnight success.
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Before you discuss or plan for scaling, it is important to understand that there
are two ways to scale a solution. First, you can scale up an application (known as
vertical scaling) by moving the application to faster computer resources, such
as a faster server or disk drive. If you have a CPU-intensive application, moving
the application to a faster CPU should improve performance. Second, you can
scale out an application (known as horizontal scaling) by rewriting the
application to support multiple CPUs (servers) and possibly multiple databases.
As a rule, normally it costs less to run an application on multiple servers than on
a single server that is four times as fast.
Assume, for example, that your application makes extensive use of a web service
to perform complex processing. If the web service becomes a bottleneck, a place
where system traffic slows because of lack of resources, you could host the web
service on a faster server (by scaling up) or you could place the web service on
multiple servers, which the application may call in a round-robin fashion (by
scaling out). As shown in FIGURE 19-3, over time, a developer may use both
vertical and horizontal scaling.

FIGURE 19-3 Developers often use vertical and horizontal scaling to meet
application demands.

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CASE 19-3 WEBPAGETEST
Before you consider scaling, you should understand your system performance
and potential system bottlenecks. www.webpagetest.org evaluates your site and
creates a detailed report, as shown in FIGURE 19-4. The report helps you identify
images you can further compress and the impact of your system caches, as well
as potential benefits of compressing text.
Exercise Use WebPagetest to evaluate two or more websites. Discuss how the
report’s findings align with your user experience.
Web Resources For more information on WebPagetest, visit
www.CloudBookContent.com/Chapter19/index.html.

FIGURE 19-4 Using WebPagetest to evaluate system performance.
Minimize Objects on Key Pages
Across the Web, developers strive for site pages that load in 2 to 3 seconds or
less. If a web page takes too long to load, visitors will simply leave the site. With
that in mind, you should evaluate your key site pages, particularly the home

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page. If possible, reduce the number of objects on the page (graphics, audio, and
so on), so that the page loads within an acceptable time.
Selecting Measurement Points
As you analyze your site with respect to scalability, you will want your efforts to
have a maximum performance impact. To begin, identify the potential
bottlenecks within the system, both with respect to CPU utilization and database
use. If, for example, you scale part of the system that is not in high demand, your
scaling will not significantly affect system performance. As you consider your
measurement points, keep the 80/20 rule in mind and strive to identify the 20
percent of your code that performs 80 percent of the processing.
CASE 19-4 ALERTRA WEBSITE MONITORING
Often, system administrators do not know that a site has gone down until a user
contacts them. Alertra, shown in FIGURE 19-5, provides a website monitoring
service. When it detects a problem, it sends an e-mail or text message to the site’s
administrative team. Companies can schedule Alertra to perform its system
checks minute-by-minute or hourly.
Exercise Discuss the benefits of having a real-time site monitor and describe
how you would justify the investment of using such a site.
Web Resources For more information on the Alertra Website Monitoring
service, visit www.CloudBookContent.com/Chapter19/index.html.

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FIGURE 19-5 Alertra notifies system administrators about a cloud-based system
error or failure.
Analyze Your Database Operations
As you know, load balancing an application that relies on database operations
can be challenging, due to the application’s need to synchronize database insert
and update operations. Within most sites, most of the database operations are
read operations, which access data, as opposed to write operations, which add or
update data. Write operations are more complex and require database
synchronization.
You may be able to modify your application so that it can distribute the database
read operations, especially for data that are not affected by write operations
(static data). By distributing your database read operations in this way, you
horizontally scale out your application, which may not only improve
performance, but also improve resource redundancy.
CASE 19-5 PINGDOM WEBSITE MONITORING

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Pingdom provides real-time site monitoring with alert notification and
performance monitoring. It notifies you in the event of system downtime and
provides performance reports based on your site’s responsiveness. As shown in
FIGURE 19-6, Pingdom provides tools you can use to identify potential
bottlenecks on your site.
Exercise Discuss the potential bottlenecks that are common to all cloud-based
sites.
Web Resources For more information on Pingdom Website Monitoring, visit
www.CloudBookContent.com/Chapter19/index.html.

FIGURE 19-6 Pingdom performance reports identify system bottlenecks.
Evaluate Your System’s Data Logging Requirements
When developers deploy new sites, often they enable various logging capabilities
so they can watch for system errors and monitor system traffic. Frequently, they
do not turn off the logs. As a result, the log files consume considerable disk space,
and the system utilizes CPU processing time updating the files. As you monitor
your system performance, log only those events you truly must measure.

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CASE 19-6 GOMEZ WEB PERFOMANCE BENCHMARKS
Many times developers want to compare their site’s benchmarks with those of
other sites. This is where Gomez comes into play. Gomez provides site
benchmarking for web and mobile applications. It provides cross-browser
testing as well as load testing. In addition, as shown in FIGURE 19-7, Gomez
performs real-user monitoring, which focuses on the user experience with
respect to the browser influence, geographic location, communication speed, and
more.
Exercise Discuss the importance of performing real-user monitoring.
Web Resources For more information on Gomez Web Performance
Benchmarks, www.CloudBookContent.com/Chapter19/index.html.

FIGURE 19-7 Using Gomez Web Performance Benchmarks to measure the user
experience.
Revisit Your Service-Level Agreement
As you plan for your site’s scalability, take time to review your service-level
agreement (SLA) with the cloud-solution provider. The SLA may specify
performance measures that the provider must maintain, which, in turn, provides
the resources to which your application can scale. As you review your SLA, make

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sure you understand the numbers or percentages it presents. For example, many
solution providers claim 99.9 percent uptime and availability. If you do the math,
you will see that if your site is down 0.1 percent of the time, it equals
(0.1%)(365 days/year)(24 hours/day)(60 minutes/hour) = 525 minutes per
year (nearly 10 hours)
Capacity Planning Versus Scalability
Scalability defines a system’s ability to use additional resources to meet user
demand. In contrast, capacity planning defines the resources your application
will need at a specific time. The two terms are related, yet different. When you
first design a system, for example, you might plan for 10,000 users accessing the
system between 6:00 a.m. and 6:00 p.m. Starting with your user count, you can
then determine the number of servers needed, the bandwidth requirements, the
necessary disk space, and so on. In other words, you can determine the capacity
your system needs to operate.
When your user demand exceeds your system capacity, you must scale the
system by adding resources.
Scalability and Diminishing Returns
If an application is designed to scale (vertical, or scaling up to faster resources is
easy), the question becomes “How many resources are enough?” Keep in mind
that you will start a scaling process to meet performance requirements based
upon user demand. To measure performance, you should select benchmarks that
are most meaningful, such as the following:
• Support for 5,000 simultaneous users
• CPU utilization that does not exceed 50 percent
• Loading of the home page in 3 seconds or less
• Loading of all pages in 5 seconds or less
• Completions of all user submitted operations in 10 seconds or less
With your selected benchmarks in place, you can begin to measure the
performance effects of scaling. At first, adding a faster processor, more servers,
or increased bandwidth should have measurable system performance

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improvements. However, you will reach a point of diminishing returns, as
shown in FIGURE 19-8, when adding additional resources does not improve
performance. At that point, you should stop scaling.

FIGURE 19-8 You will reach a point of diminishing returns, at which point
further scaling does not significantly improve application performance.
Performance Tuning
Your goal is to maximize system performance. By scaling resources, you will, to a
point, increase performance. In addition to managing an application’s resource
utilization, developers must examine the application itself, beginning with the
program code and including the objects used, such as graphics and the
application’s use of caching. Caching is the use of a faster disk drive or faster
random access memory to store items that are used repeatedly by the
application in order to improve system performance
This process is known as performance tuning. To start the process, look for
existing or potential system bottlenecks. After you correct those, you should
focus on the 20 percent of the code that performs 80 percent of the
processing—which will provide you the biggest return on your system tuning
investment.

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Complication Is the Enemy of Scalability
As you design solutions, remember that as complexity within a system increases,
so too does the difficulty of maintaining the underlying code, as well as the
overhead associated with the complex code. Furthermore, as an application’s
complexity increases, its ability to scale usually decreases. When a solution
begins to get complex, it is worth stopping to evaluate the solution and the
current design. Often, complexity occurs because a solution is trying to handle all
possible conditions—some of which may never occur. If you design the solution
for the common conditions (the 80/20 rule) in a simple way, your code will be
easier to modify in the future, perhaps to support horizontal scaling.
CASE 19-7 KEYNOTE CLOUD MONITORING
Keynote, as shown in FIGURE 19-9, is one of the world’s largest third-party
monitors of cloud and mobile applications. In fact, the company performs more
than 100 billion site measurements each year. Keynote uses thousands of
measurements that come from computers dispersed across the globe. In addition
to providing notification of site downtime, Keynote provides a real-time
performance dashboard.
Exercise Discuss the importance of testing a cloud solution’s performance from
computers dispersed across the globe.
Web Resources For more information on Keynote Cloud Monitoring, visit
www.CloudBookContent.com/Chapter19/index.html.

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FIGURE 19-9 Keynote Cloud Monitoring provides site performance in real time.
CHAPTER SUMMARY
An application’s scalability corresponds to its ability to add or remove resources
dynamically based on user demand. One of the greatest advantages of
cloud-based applications is their ability to scale. Unfortunately, often it is difficult
for developers to identify what an application’s user demand will be. Often,
developers will release site resources (servers, CPUs, disk space) capable of
meeting the anticipated initial user demand, plus growth. When developers are
wrong, however, the project will have too few or too many resources. This
chapter examined ways applications can scale up to faster processors or scale
out to utilize more resources.
KEY TERMS
Bottleneck
Caching

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Point of diminishing returns
Horizontal scaling
Pareto principle
Performance tuning
Vertical scaling
CHAPTER REVIEW
1. Define scalability.
2. List five to ten potential relationships that align with the Pareto principle, such
as how 80 percent of sales come from 20 percent of customers.
3. Compare and contrast vertical and horizontal scaling.
4. Explain the importance of the database read/write ratio.
5. Assume a site guarantees 99.99 percent uptime. How many minutes per year
can the site be down?

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chapter 20
The Future of the Cloud
THROUGHOUT THIS BOOK, YOU have examined the most recent cloud-based
solutions and applications. With many cloud solutions already seemingly quite
cutting edge, it is hard to imagine how the cloud will evolve in the near and far
term.
Learning Objectives
This chapter examines the future of the cloud and cloud-based applications. By
the time you finish this chapter, you will be able to do the following:
• Describe how the cloud will influence future operating systems.
• Describe how the cloud enables location-aware applications.
• Describe how the cloud will change the way people watch TV.
• Describe how the cloud may enable the use of intelligent fabrics.
• Describe how the cloud will enable communication among smart devices.
• Describe how the cloud will drive mobile solutions and mobile solutions will
drive the cloud.
• Discuss the role of HTML5 in enabling new mobile applications.
• Describe the role of home-based clouds.
CASE 20-1 FUTURE OF CLOUD COPMUTING
Janna Quitney of Elon University and Lee Rainie of the Pew Research Center’s
Internet & American Life Project surveyed cloud experts and produced “The
Future of Cloud Computing,” shown in FIGURE 20-1. The report includes opinions
and insights as to how the cloud will evolve over the next 10 years.
Quitney also heads Elon University’s Imagining the Internet Center, shown in
FIGURE 20-2, where you will find surveys, articles, and videos that look at the

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Internet’s past and future. Much of the discussion provides insights into the
cloud’s future as well.
Finally, the Pew Research Center’s Pew Internet & American Life Project
provides surveys and articles on the cloud—from where it has come to where it
is going.
Exercise Read the predictions on the cloud’s future. Argue for one prediction and
against another.
Web Reference For more information on the predictions of the cloud’s future,
visit www.CloudBookContent.com/Chapter20/index.html.

FIGURE 20-1 “The Future of Cloud Computing,” published by Quitney and Rainie,
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FIGURE 20-2 The Imagining the Internet site is filled with evaluations of the
Internet’s past and predictions of its future.
How the Cloud Will Change Operating Systems
Operating systems exist to allow users to run programs and store and retrieve
data from one user session to the next. As discussed in Chapter 8, Virtualization,
most server operating systems now support and will continue to support
hypervisors that allow multiple (and possibly different) operating systems to run
simultaneously. Virtualized servers will continue to play a large role in driving
the behind-the-scenes operation of the cloud.
As also discussed in Chapter 8, many organizations are going to an
operating-system-on-demand model for which servers download a user’s
operating system, applications, and environment settings to any computer the
user logs in to. With the advent of more programs that run within a browser,
there may be much less need for powerful desktop operating systems, such as
Windows and Mac OS. If you doubt that statement, note the rapid user adoption
of smartphones that feature scaled-down operating systems and applications.
CASE 20-2 HOW THE CLOUD WILL IMPACT PLAYERS SUCH AS MICROSOFT

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Microsoft is heavily invested in all aspects of computing, including the cloud.
Microsoft’s CEO, Steve Ballmer, has publicly stated that Microsoft, like other
companies, is “betting the exact quote is betting our company on the cloud
company on the cloud.” Windows (and SQL Azure) provide a platform as a server
(PaaS) solution for .NET developers, Office 360 provides a powerful software as a
service (SaaS) solution, Microsoft servers are integrating virtualization support,
and the huge revenue generator that is the Windows operating system faces risks
from a “thin” and possibly downloadable operating system. (A thin operating
system is one that performs only the minimal tasks needed for a user to run
programs and save and retrieve information.)
Accordingly, Microsoft has formed a group named Cloud Computing Futures,
which focuses on scalable computing, data center solutions, and cloud-based
software infrastructures. The cloud, therefore, is not just an industry changer; it
is making key players rethink their strategies.
Exercise Describe the cloud’s potential biggest benefit for Microsoft and the
cloud’s biggest threat to Microsoft.
Web Reference For more information on the cloud’s impact on Microsoft’s
future, visit www.CloudBookContent.com/Chapter20/index.html.
Location-Aware Applications
A location-aware application utilizes data from the GPS (global positioning
system) capabilities built into mobile devices to integrate an individual’s location
into the processing it performs. As GPS capabilities are built into more devices,
applications will begin to deliver more location-aware solutions. For example, a
stroll through a mall may result in coupons being pushed to your handheld
device. Grocery store aisles may become interactive zones with retailers able to
deliver “bid-based” coupons in real time to influence your purchases.
Using the cloud and location-aware solutions, you will be able to track not only
the packages you ship, but also stolen cars, lost luggage, misplaced cell phones,
missing pets, and more.
CASE 20-3 COUPIOUS MOBILE COUPONS

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Users of computers and handheld devices are becoming on-demand consumers:
They want what they want, when and where they want it. Coupious Mobile
Coupons provides insights into the future of coupon clipping. The site, shown in
FIGURE 20-3, currently delivers on-demand, location-aware coupons to states
along the east coast of the United States.
Exercise Discuss ways on-demand coupons may change how shoppers make
purchases.
Web Resources For more information on Coupious Mobile Coupons, visit
www.CloudBookContent.com/Chapter20/index.html.

FIGURE 20-3 Through sites such as Coupious Mobile Coupons, users receive
coupons on their smart devices from the cloud based on their current location.
Intelligent Fabrics, Paints, and More
The ability to connect devices to the cloud from any place, at any time, will open
the door to a wide range of cutting-edge applications. At the obvious end, devices
that once had to be read by utility or city employees, such as electric meters and

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parking meters, will connect to the Web and create a report. At the cutting edge,
intelligence will be built into the fabrics of our clothes, bedding, and furniture.
These intelligent fabrics will provide a wide range of services including the
following:
• Automatically adjust room temperature when body temperature becomes too
warm or too cold.
• Notify rooms when we enter or leave so that lights, music, and other devices
are automatically controlled.
• Monitor body functions such as blood pressure, blood sugar levels, stress, and
more, and notify the person and adjust the environment to affect those functions.
• Notify others when an elderly person has fallen.
• Provide deterrence against mosquitoes and other insects.
FIGURE 20-4 presents the Textronics website, which provides a wide range of
wearable electronics.

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FIGURE 20-4 Through developments at companies such as Textronics, in the
near future our clothing may interact with our environment through the cloud.
Similarly, new paints being developed change form based on environmental
conditions. Currently, paints can change color on roads to indicate the presence
of ice. In the future, intelligent paint may report driving conditions back to the
cloud.
CASE 20-4 ABOVE THE CLOUDS: A BERKELEY VIEW OF CLOUD COMPUTING
Reliable Adaptive Distributed Systems Laboratory from the University of
California, Berkeley, has published a paper that not only provides a view of
where cloud computing is going, but also is an excellent summary and overview
of the key cloud-computing concepts. The paper, as shown in FIGURE 20-5, is
available on the Web and is a must-read. It addresses the following questions:

FIGURE 20-5 “Above the Clouds” is a must-read for those wanting to become
cloud technology experts.

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• What is cloud computing, and how is it different from previous paradigm shifts
such as SaaS?
• Why is cloud computing poised to take off now, whereas previous attempts
have foundered?
• What does it take to become a cloud provider, and why would a company
consider becoming one?
• What new opportunities does cloud computing drive or make possible?
• How might we classify current cloud computing offerings, and how do the
technical and business challenges differ depending on where in the spectrum a
particular offering lies?
• What, if any, are the new economic models enabled by cloud computing, and
how can a service operator decide whether to move to the cloud or stay in a
private data center?
• What are the top 10 obstacles to the success of cloud computing—and the
corresponding top 10 opportunities available for overcoming those obstacles?
• What changes should be made to the design of future application software,
infrastructure software, and hardware to match the needs and opportunities of
cloud computing?
Exercise Read the “Above the Clouds” paper and answer the questions listed
above.
Web Resources For more information on “Above the Clouds,” visit
www.CloudBookContent.com/Chapter20/index.html.
The Future of Cloud TV
As you have learned, companies such as Hulu are changing the way consumers
watch TV. With greater bandwidth available everywhere, DVDs will soon fall by
the wayside. Not only will TV viewers watch shows on demand in their homes, in
their cars (backseats only, let’s hope), and on airplanes, but also a new breed of
projection devices will make any flat surface a TV screen. Furthermore, users will
be able to interact with content, perhaps changing the outcome of a story in real
time.

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CASE 20-5 PREDICTING CLOUD TV’S FUTURE
As shown in FIGURE 20-6, Cisco’s Internet Business Solutions Group (IBSG) has
developed a presentation that predicts the future of TV based on cloud-based
delivery.
Exercise Discuss how TV companies need to change their business models to
adapt to cloud-based content delivery.
Web Resources For more information on the predictions of the cloud’s impact
on TV, visit www.CloudBookContent.com/Chapter20/index.html.

FIGURE 20-6 Cisco’s IBSG predicts how the cloud will change TV.
Courtesy of Cisco Systems, Inc. Unauthorized use not permitted.
www.slideshare.net/
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CASE 20-6 FUTURE OF CLOUD COMPUTING
CloudTimes is a San Francisco-based web publisher that provides the latest
news on all aspects of cloud computing. Bookmark and visit cloudtimes.org,
shown in FIGURE 20-7. Recently, CloudTimes published 10 predictions about the
future of cloud computing, which you should consider and evaluate.
Exercise Read the 10 predictions by CloudTimes about the future of cloud
computing. Argue for one prediction and argue against one prediction.
Web Resources For more information on the 10 predictions on cloud computing
by CloudTimes, visit www.CloudBookContent.com/Chapter20/index.html.

FIGURE 20-7 The 10 predictions about the future of cloud computing by
CloudTimes.
Future of Cloud-Based Smart Devices
For years, futurists have forecast the day when a refrigerator would
automatically create your grocery list and send the list to the store so your

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essentials could be delivered. The cloud’s ability to provide Internet access and at
any time makes such processing a reality. Some devices may initially be
“intelligent” with respect to their ability to control power consumption, possibly
avoiding power use during peak times and costs.
Using the cloud for communication, devices can coordinate activities. For
example, your car may notify your home automation system that you are down
the block and instruct it to light the house, turn on your favorite music, and
prompt the refrigerator for a list of ready-to-cook meals.
CASE 20-7 POWER-AWARE APPLIANCES
Every household has appliances such as a refrigerators, water heaters,
dishwashers, washers, dryers, and so on. If these devices are replaced with
smart appliances—ones that are “energy aware”—they can control their power
demand during peak times and in the process, save the consumer money. The
Pacific Northwest National Laboratory has created a video that discusses such
appliances.
Exercise Discuss three appliances that may benefit from power-control
capabilities.
Web Resources For more information on power-aware appliances, visit
www.CloudBookContent.com/Chapter20/index.html.
Cloud and Mobile
The cloud is going to drive mobile applications. No, wait. Mobile applications will
drive the growth of the cloud. Cloud-based mobile applications are going to
experience explosive growth!
CASE 20-8 MOBILE CLOUD: TOP FIVE PREDICTIONS
Cisco is a key player in the hardware and network technology that drives the
cloud. Cisco’s IBSG is a strategic consulting group that examines new and
emerging technologies that utilize the Web. The group has developed five
predictions about the future of mobile cloud computing, “When Mobile and
Clouds Collide.” You read about these predictions in Chapter 14, but here they
are again, shown in FIGURE 20-8.

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Exercise Discuss whether you think the cloud will drive the growth of mobile
computing more than mobile computing will drive the growth of the cloud, or
vice versa.
Web Resources For more information on the predictions of the cloud’s impact
on mobile computing, visit www.CloudBookContent.com/Chapter20/index.html.

FIGURE 20-8 Five predictions about how mobile and the cloud will drive each
other, from Cisco’s IBSG.
Courtesy of Cisco Systems, Inc. Unauthorized use not permitted.
www.thecloudinfographic.com/mobile-cloud-top-5-predictions.html. (accessed
8/3/11).
How HTML5 Will Drive Mobile Applications
Mobile applications are one of the fastest growing IT market segments. Today,
mobile developers have several choices. First, they can implement a simple
HTML-based site that both a computer and a mobile device can display. Second,
they can build separate pages for computers and mobile devices. Or, third, they

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may need to implement a computer page, an iPhone-specific page, and pages for
other devices such as the Android.
The primary problem facing developers is that many computer-based websites
use Flash-based applications, and Flash does not work on mobile devices. As
such, developers cannot simply build a single website that works on all devices.
Or rather, they could not until the advent of HTML5.
Across the Web, the content that users view within a browser must eventually
become HTML, the hypertext markup language. HTML5 is the 20th anniversary
update release of HTML, which supports capabilities previously available only
through Flash-based development. Using HTML5, developers can create
multimedia content suitable for all devices. As a result, HTML5 will further drive
the success of mobile applications.
Faster Time to Market for Software Applications
The cloud streamlines many expensive and time-consuming development steps.
Companies no longer have to raise the capital required to fund a large data
center. Instead, they can leverage a PaaS solution. Furthermore, companies no
longer have to pay expensive upfront licensing fees for various software tools
such as database management systems. Instead, they can leverage
pay-on-demand solutions. Finally, companies no longer have to guess their site’s
adoption rate so that they can provide the underlying computing resources.
Instead, they can let their cloud-based applications scale to meet demand. The
net result: Developers will release software solutions at a faster pace, bringing
the solutions to a market that expects high functionality and demands lower cost.
Home-Based Cloud Computing
Today, most households have wireless network capabilities that allow family
members to connect to the Web and access sites and content they desire. With
the advent of smart devices, intelligent fabrics, and greater use of radio
frequency identification (RFID) devices, family members will expect on-demand
personalized technology solutions. When a teenager enters his or her room, for
example, the music will play louder, lights may dim, and the computer might
initiate specific Skype connections. If a parent enters the room, the volume will
lower, lights will turn on, and the Skype page might change to an SAT prep
application. In other words, families will use cloud-based devices to customize

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their environments and experiences. Within such an environment, families will
want to restrict processing to within the home—meaning that they will not want
neighbors to receive signals generated by their devices and clothing. That implies
the ability to encrypt a wide range of signals within the home. To that end, you
should expect to see cloud-based, in-home devices that store family files,
maintain appliance settings, download and store movies and TV shows, and
more.
CHAPTER SUMMARY
This book examines many recent cloud-based solutions and applications. For
those who are new to the cloud, many existing cloud solutions will seem quite
cutting edge. As you have learned in this chapter, we have just begun to scratch
the surface with respect to ways new technologies can use the cloud to
communicate, coordinate, and develop applications that take into account our
location, body feedback, and more. From mobile-device applications to new
operating systems to an integration of smart appliances and devices, the cloud is
really just beginning to form.
KEY TERMS
HTML5
Intelligent fabrics
Location-aware application
Smart appliance
Thin operating system
CHAPTER REVIEW
1. List and describe five ways you think the cloud will change the future of TV.
2. List and describe five potential uses for intelligent fabric.
3. List and describe five ways the cloud will influence the mobile application
market, or vice versa.
4. Discuss the importance of HTML5.
5. Discuss how the cloud will impact future operating systems.

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6. List and describe three potential location-aware applications.
7. List and describe five ways intelligent devices may work together.

354

Table of Contents for
Cloud Computing

GLOSSARY OF KEY TERMS
Amazon Web Services (AWS) Amazon.com’s cloud solution, which provides
scalable hosting solutions to developers and enterprises for moving applications
to the cloud.
App Software application that users download and install to their phone to
perform specific tasks.
Application program interface (API) Group or library of related programming
solutions that developers can use within the programs they create. For example,
one API might provide developers with prepackaged code they can use to
perform common Internet tasks. Another might provide developers with code
they can use to encrypt or decrypt a document.
Architecture Components that comprise a system, their relationships, and their
interactions.
Auditing Process of examining and verifying a financial record or control.
Black box Software component for which developers can ignore how the
component performs its processing, knowing instead that the component will
produce correct results for required inputs.
Blog Web log; users with little or no web development experience can publish
content in a blog.
Bottleneck Place within a solution or system that due to insufficient resources,
slows the flow of system performance.
Business continuity Steps taken by a business to ensure its continued
operations in the event of a system failure, disaster, or other disruptive event.
Business strategy Plans executed by a company to achieve its business goals.

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Caching Items that are used repeatedly by an application to improve system
performance are stored by using a faster disk drive or faster RAM.
Capital expenditures (CAPEX) Large expenditures, often for a plant, property,
or large equipment (PPE), which have value over a number of years. As such,
companies cannot write off the expenditures in full during the current year and
must instead use a process called expense capitalization, which allows the
company to deduct a portion of the expense over a number of years.
Cloud-based block storage device Device that stores data in raw (unformatted)
blocks of bits, up to a terabyte. Usually it does not provide a file system to
manage the data stored within a block or blocks.
Cloud-based database Web-based database system that scales to meet system
demands, integrates automatic backups, and allows developers access from
within their programs through an API.
Cloud bursting Scaling of an on-site solution temporarily into the cloud to meet
user demand, typically in response to seasonal or event-driven demand.
Cloud computing Abstraction of virtualized web-based computers, resources,
and services that support scalable IT solutions.
Cloud Data Management Interface (CDMI) Developing standard by the Storage
Networking Industry Association that defines how applications will interface
with cloud-based storage devices behind the scenes.
Cloud file system (CFS) System that allows users and applications to directly
manipulate files that reside on the cloud.
Cloud migration Process of moving one or more applications to the cloud.
CloudNAS Trade name of a particular cloud-based NAS (network-attached
storage) solution.
Collaboration Two or more people working together to achieve a goal.
Colocation Positioning of additional computers and/or communications
equipment at a remote (offsite) location for load balancing, redundancy, or
improved business continuity.

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Common Internet File System (CIFS) A protocol that defines a standard for
remote file access using a large scale of computers at a time.
Community cloud Cloud solution shared by two or more organizations,
normally with shared concerns, such as schools within a university.
Corporate governance Processes, policies, laws, and controls that affect the way
a company operates.
Coupling Degree of dependence between a calling program and the web service.
Customer-relationship management (CRM) Term used to describe the various
aspects of locating, recruiting, managing, and growing a company’s customer
base.
Data integration Process of combining data from two or more solutions.
Data wiping Process performed by cloud-based storage devices that overwrites
(wipes) a file’s contents when a file is deleted. Then, another application that
allocates the deleted file’s storage locations cannot access the deleted file’s
contents.
Denial-of-service attack Hacker attack that attempts to consume resources on a
system in such a way that slows the system or makes its resources unavailable to
users.
Disaster recovery plan (DRP) Plan that details the steps taken by an
organization to resume business operations following an event such as a natural
disaster or terrorist attack.
Economics Study of the production, distribution, and consumption of goods and
services.
Economies of scale Cost savings gained through expansion. Because of its
buying power and ability to use resources across multiple customers, a
cloud-based service provider normally has greater economies of scale than an
on-site data center.
Ecosystem Environment that consists of living and nonliving things with which
one interacts.

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Federated identity management (FIDM) Technologies and protocols that
combine to allow the exchange of identity attributes across autonomous systems.
File system Part of the operating system that oversees file and folder (directory)
access.
Functional requirements Requirements that specify tasks a system must
perform.
Google App Engine Development tools that assist with the deployment of
cloud-based applications that run within the Google infrastructure.
Green computing Environmentally friendly IT operations, such as reducing a
device’s power demands when it is inactive.
Grid computing Large-scale use of computers connected by a network (the grid)
to perform parallel processing on complex tasks.
Guest-hopping attack Hacker attack that attempts to gain access to (hop onto)
another guest operating system from within a peer-level guest operating system
running on the same server.
Guest operating system Operating system that resides within a virtualized
environment. For example, a virtual desktop might use Windows and Linux as
guest operating systems.
Halon Chemical used in data-center fire suppression systems, which stops a fire
by removing the level of oxygen in the room.
Horizontal scaling Process of scaling out; that is, distributing a system’s
processes across multiple resources.
Hybrid cloud Solution that comprises a combination of two or more public,
private, or community clouds.
Hyperjacking attack Hacker attack that targets the hypervisor within a
virtualized server or desktop.
Hypervisor Software within a virtual system that oversees and manages the
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HTML5 Fifth release of the hypertext markup language, which provides
device-independent support for multimedia capabilities previously available
through Flash-based applications.
iCloud Apple’s cloud-based solution, which facilitates the exchange of music,
photos, videos, and documents.
Identity (or identification) as a service (IDaaS) Cloud-based approach to
managing user identities, including usernames, passwords, and access.
Sometimes referred to as “identity management as a service.”
Infrastructure as a service (IaaS) Scalable, cloud-based collection of server,
data storage, and network hardware upon which a company can install and
manage its operating system and database management software in order to
host their applications within the cloud.
Instant messaging (IM) Originally a text-based method for users to
communicate; today, IM supports text, audio, and video interaction.
Integrated development environment (IDE) Software system for application
developers that provides a user interface that allows access to key
software-development activities, such as editing, compiling, and testing.
Intelligent fabrics Clothing that includes technology and computing devices
within the fabric that can be used to monitor body temperature, blood pressure,
and other vitals. The technology may be used to broadcast an individual’s
position to location-aware applications.
Internal control Policy put in place by a business to provide confidence and
assurance on the accuracy of the data reported by the company.
Interoperability Measure of a software component’s ability to support different
platforms and programming languages.
IT governance Processes, policies, and controls that affect the way an IT staff
operates to maximize a company’s ROI and to align its business strategy and IT
operations.
Key performance indicators Business ratios and results measured and
evaluated by a company to understand the state of the business and its
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Load testing Simulation of user demand on a site.
Location-aware application Application that utilizes GPS-based data to
integrate an individual’s location into the processing performed by the
application, such as location-specific delivery of coupons and home environment
processing.
Loosely coupled Ideal relationship between programs and the web services
they call on, in which the program need only know the location of the web
service (its URL), the name of the functions (methods) the web service provides,
and parameters the program can pass to the functions.
Man-in-the-middle attack Hacker attack that attempts to intercept messages
between a user and a system, insert, and then send messages on behalf of the
user or the system.
Mashup Software solution built from a combination of two or more other
solutions.
Mean time between failures (MTBF) Measure of the estimated time a device
will operate without failing.
Method Function that performs a specific task.
Middleware Software that sits between two applications to facilitate the
exchange of data.
Mobile cloud Applications and web pages that originate from sites within the
cloud with which users download or interact via a mobile device.
Multitenant solution SaaS or PaaS solution for which two or more customers
may share computing resources simultaneously. Many SaaS solutions use a
multi-tenant architecture.
Network-attached Storage (NAS) Storage devices that can be accessed over a
computer network rather than being directly connected to the computer.
Network File System (NFS) A system that allows directories and files to be
shared with others over a network.
Nonfunctional requirements Requirements a system must meet to complete its
functions, such as performance, response time, and security.

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Operational expenses (OPEX) Expenses that correspond to a company’s cost of
operations.
Packet sniffing Process of examining network packets that travel past a system
within a wired network or through the air within a wireless network.
Pareto principle Rule of 80/20 that describes relationships between two items,
such as 80 percent of a company’s sales are generated by 20 percent of its
customers.
Performance tuning Process of modifying different aspects of a system or the
supporting hardware to improve system performance.
Platform Combination of hardware and software resources that yields a
run-time environment, such as a Windows- or Linux-based environment.
Platform as a service (PaaS) Software and hardware that provides an operating
system (such as Windows or Linux) upon which developers can create and
deploy solutions, without the need to administer the underlying system software.
Examples include the Google App Engine and Microsoft Azure.
Point of diminishing returns Point at which adding resources fails to change a
system’s performance or output.
Portability Measure of a system’s ease of moving from one platform to another.
Predictive analytics Tools that perform statistical analysis in order to predict
future behavior.
Private cloud Solution in which the underlying hardware and software is owned
by a specific entity (company) for use by the entity and its customer.
Profit margin Measure of a company’s profitability and effectiveness, calculated
by dividing a company’s net income by its revenues.
Provisioning Process of creating a user account on a system; removing the
account is called deprovisioning.
Proxy Person or entity that performs a task on behalf of another. Within the
mobile web, proxies may perform a server-based interaction on behalf of a
mobile user to provide a layer of security between the server and device.

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Public cloud Solution available to the general public, such as Google Docs.
Redundancy A system design that duplicates components to provide
alternatives in case one component fails.
Redundant array of independent (or inexpensive) disks (RAID) Collection of
disk drives across which a file system stores information about a file, as well as
recovery information the system can use to recover the file should one or more
of the disk drives fail.
Reliability Measure of a system’s ability to process without errors or failure.
Return on investment (ROI) Business analysis ratio that lets a company
compare the potential return of two or more investments, calculated by taking
the revenue (or savings) divided by the cost of the investment.
Right-sizing Process of aligning computing resources (e.g., processors, servers,
and disk capacity) with user demand. Because cloud-based providers can scale
up or down quickly, based on user demand, they make it easier for companies to
right-size resources.
Robust Ability to function in the event of errors, such as a server failure.
Scalability Ability to increase or decrease resource use (such as servers or data
storage) on demand, as processing needs require. Scalable applications can scale
up (increase) resources when there is high user demand and scale down
(decrease) resources when there is low demand.
Security Assertion Markup Language (SAML) Language that applications use
to package a user’s security credentials.
Service-level agreement (SLA) Clause within a service provider’s contract that
specifies the level of service (such as system uptime or MTBF).
Service-oriented architecture (SOA) System design upon which the solution is
described in terms of one or more services, usually distributed on the Web.
Single sign-on (SSO) Process that allows a user to log into a central authority
and then access other sites and services for which he or she has credentials.

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Smart appliance Appliance such as a refrigerator or washing machine that
integrates technology to perform specific tasks such as reducing energy demands
during peak load times or performing inventory analysis of groceries.
Software as a service (SaaS) Web-based software solution that users access
through a web browser.
Software development kit (SDK) Collection of APIs that developers can
integrate into programs to use a specific device, platform, or operating system.
SQL-injection attack Hacker attack that attempts to insert SQL queries into one
or more fields of a web-based form. Depending upon how the server processes
the form’s data, the SQL commands may be inadvertently executed.
Storage area network (SAN) Network that combines hardware and software to
make storage devices, which may reside anywhere within a network, appear to
be local.
Streaming media Retrieval of media, such as audio or video, often within a web
browser, that does not require a complete download of the media file before the
playback can begin.
System requirements Functional tasks and nonfunctional operations that a
system must perform.
Thin operating system System that performs only the minimal tasks needed for
a user to run programs and save and retrieve information.
Total cost of ownership (TCO) Total direct and indirect costs, including both
capital and operating expenses, of owning a particular piece of equipment or
other capital good. It is an important metric for organizations trying to decide
whether to invest in their own data centers or move to the cloud.
Transcoder Server that analyzes and possibly changes content destined to user
devices.
Uninterruptible power supply (UPS) Battery backup system that typically
provides 10 to 15 minutes of power to devices in the event of a power failure, so
that users can save files and shut down the systems in an orderly way.
Usability Measure of a system’s ease of use.

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User-experience testing Software test that attempts to simulate and evaluate
user experience with the site, possibly including slower Internet bandwidth, an
older browser, or a slower computer.
Vendor lock-in Situation when it is difficult or impossible for a company to
change a vendor because of the vendor’s inability to export data or a unique
service provided by the vendor, upon which the company relies.
Vertical scaling Process of scaling up; for example, moving a system to a faster
disk drive, adding faster RAM, or using a faster disk drive to improve a system’s
performance.
Virtual desktop Desktop computer that runs two or more operating systems
that users can quickly switch back and forth. A virtual desktop is well suited for
developers, testers, and help-desk support staff who must service multiple
operating systems.
Virtualization Hardware and/or software used to create a perception. For
example, with virtual desktop software, a user running an Intel-based computer
may be able to run multiple operating systems simultaneously. Similarly, using
server virtualization, a single server may appear to be running multiple
(different) server operating systems simultaneously, as if the server had multiple
processors.
Virtual meeting Online meeting between two or more users. Using streaming
video, users can achieve a face-to-face experience. Most virtual meeting
platforms allow document sharing, whiteboard content presentation, and
application sharing.
Virtual presentation Cloud-based presentation that users can retrieve and
watch asynchronously at a time and from a place that best suits the users’ needs.
Virtual presentations often combine a PowerPoint presentation with video or
audio.
Virtual private network (VPN) Hardware and/or software used to establish a
secure connection to a local-area network across the Internet from a remote
location. The remote user can, in turn, access network resources as if a physical
connection to the local-area network existed.

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Virtual server Server that runs two or more operating systems simultaneously.
The operating systems may be the same, or they may be different, such as
Windows and Linux. Many companies use server virtualization to consolidate
servers and drive server CPU utilization.
Virus Program written by malicious programmers with the goal of damaging a
target computer or disrupting the computer’s normal operations.
Voice over Internet Protocol (VoIP) Technology that allows users to place
phone calls over the Internet.
Web 2.0 Tools and websites that allow users to publish content (videos, blogs,
tweets, and social media posts) without having to understand the web
development process.
Web Service Description Language (WSDL) Language used to describe a web
service, its methods, and their parameters.
Web services Web-based software modules that programs can call via the
Internet to perform specific tasks.
Widget Application that, once downloaded and installed on a device, remains
active (constantly runs), possibly updating its icon or display with context- or
location-sensitive content.
Wiki Tool for online collaborative document editing. The largest and most
popular Wiki is the Wikipedia online encyclopedia.
Windows Azure Microsoft platform that developers can use to move their
applications to the cloud.
Yahoo! Pipes Tool that lets developers create mashups by joining (piping) the
output of one data source into another data source, filter, or display tool without
having to write program code.

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