INTRODUCTION WHAT IS IT Let's say you're an executive at a large corporation.

. Your particular responsibilities include making sure that all of your employees have the right hardware and software they need to do their jobs. Buying computers for everyone isn't enough - you also have to purchase software or software licenses to give employees the tools they require. Whenever you have a new hire, you have to buy more software or make sure your current software license allows another user. It's so stressful that you find it difficult to go to sleep on your huge pile of money every night. Soon, there may be an alternative for executives like you. Instead of installing a suite of software for each computer, you'd only have to load one application. That application would allow workers to log into a Web-based service which hosts all the programs the user would need for his or her job. Remote machines owned by another company would run everything from e-mail to word processing to complex data analysis programs. It's called cloud computing, and it could change the entire computer industry. In a cloud computing system, there's a significant workload shift. Local computers no longer have to do all the heavy lifting when it comes to running applications. The network of computers that make up the cloud handles them instead. Hardware and software demands on the user's side decrease. The only thing the user's computer needs to be able to run is the cloud computing system's interface software, which can be as simple as a Web browser, and the cloud's network takes care of the rest. There's a good chance you've already used some form of cloud computing. If you have an e-mail account with a Web-based e-mail service like Hotmail, Yahoo! Mail or Gmail, then you've had some experience with cloud computing. Instead of running an e-mail program on your computer, you log in to a Web email account remotely. The software and storage for your account doesn't exist on your computer -- it's on the service's computer cloud.

WHY THE RUSH TO THE CLOUD? -CHARACTERISTICS OF CLOUD COMPUTING The characteristics discussed in this section describe cloud computing. These characteristics represent utility-type delivery of IT services available on demand and pay for what you use. Each cloud model discussed in this document exhibits some or all of these qualities. On demand: Resources can be provisioned when requested. Server and storage resources can be requested programmatically through the use of APIs or the customer can use a web interface to request them. The requested resources are provisioned and immediately made available. Elastic: Cloud computing gives the appearance of infinite infrastructure resources. The infrastructure can automatically scale up and down as needed to satisfy spikes in processing demand. Usage based costing: Services are metered to determine the precise use of network, server and storage resources. Customers can be charged for what they use consumption based billing. This chargeback method provides full transparency to the customer. Self-service: Self-service allows end--users (customers) to consume cloud services without the assistance of IT. Customers may subscribe to IaaS, PaaS or SaaS services using a web interface and a credit card, instantly becoming productive. Additionally, internal developers may provision their own server for development and test activities without waiting for an IT administrator to do so. Pooled Resources: Network, server and storage resources are no longer dedicated to specific applications. These resources belong to a pool that can be used by any application when needed. Pooling resources increases capacity utilization and provides greater flexibility to satisfy spikes in compute demand.

CLOUD COMPUTING ARCHITECTURE When talking about a cloud computing system, it's helpful to divide it into two sections: the front end and the back end. They connect to each other through a network, usually the Internet. The front end is the side the computer user, or client, sees. The back end is the "cloud" section of the system. The front end includes the client's computer (or computer network) and the application required to access the cloud computing system. Not all cloud computing systems have the same user interface. Services like Web-based email programs leverage existing Web browsers like Internet Explorer or Fire fox. Other systems have unique applications that provide network access to clients. Most of the time, servers don't run at full capacity. That means there's unused processing power going to waste. It's possible to fool a physical server into thinking it's actually multiple servers, each running with its own independent operating system. The technique is called server virtualization. By maximizing the output of individual servers, server virtualization reduces the need for more physical machines. On the back end of the system are the various computers, servers and data storage systems that create the "cloud" of computing services. In theory, a cloud computing system could include practically any computer program you can imagine, from data processing to video games. Usually, each application will have its own dedicated server. A central server administers the system, monitoring traffic and client demands to ensure everything runs smoothly. It follows a set of rules called protocols and uses a special kind of software called middleware. Middleware allows networked computers to communicate with each other.

CLOUD FORMATIONS There are three types of cloud formations: private (on premise), public, and hybrid. Public clouds are available to the general public or a large industry group and are owned and provisioned by an organization selling cloud services. A public cloud is what is thought of as the cloud in the usual sense; that is, resources dynamically provisioned over the Internet using web applications from an off-site third-party provider that supplies shared resources and bills on a utility computing basis. Private clouds exist within your company's firewall and are managed by your organization. They are cloud services you create and control within your enterprise. Private clouds offer many of the same benefits as the public clouds the major distinction being that your organization is in charge of setting up and maintaining the cloud. Hybrid clouds are a combination of the public and the private cloud using services that are in both the public and private space. Management responsibilities are divided between the public cloud provider and the business itself. Using a hybrid cloud, organizations can determine the objectives and requirements of the services to be created and obtain them based on the most suitable alternative.

BUSINESS BENEFITS OF CLOUD COMPUTING Although ostensibly the term cloud computing sounds like some futuristic concept that is decades away, many individuals utilize cloud services every day, from web-based email, music and video to gaming sites that allow you to play high performance games on low-end machines. However, cloud computing perhaps makes the most sense for businesses, as the service offers increased flexibility and security at a price precipitously lower than the old paradigm of hardware and software upgrades.There are several business and technical benefits associated with cloud computing. The primary business benefits are reduced IT costs and faster time to market. This doesnt minimize the other benefits, but in todays competitive and economically challenged environment the ability to cut cost while reducing the time to bring new products and services to the marketplace is very compelling. A summary of the business benefits is described below. Each organization should assess their needs before pursuing cloud initiatives. Reduced IT costs: Cloud computing significantly reduces the capital investments needed to implement new or extend existing IT services. This is accomplished by either pooling internal IT resources (private cloud) or subscribing to external IT services (public cloud) that satisfy the business needs. Faster time to market: Cloud computing solutions streamline delivery of technology services needed to support business objectives. Whether its subscribing to third party application services or leveraging infrastructure automation, cloud computing can significantly reduce the time needed to deploy solutions. This enables faster time to market for products and services. Business flexibility: Many businesses are dependent on the Internet to deliver products and services. Cloud computing affords these businesses the flexibility to scale up and down as needed to meet the demand. During seasonal peaks additional resources can be provisioned on-demand. This is a significant departure from the traditional model that required long lead times and significant investment to handle seasonal demand spikes. Quality of service: Cloud computing inherently improves the resiliency of IT services and minimizes performance degradation due to system resource constraints (e.g., CPU and memory). The distributed architecture associated

with cloud computing reduces service outages caused by single points of failure. Additionally, customers no longer experience slow performance when unexpected increase in demand occurs. Improve IT Value: The automation capability enabled by cloud computing reduces routine tasks such as system provisioning and de--provisioning. Relief from these tasks enables IT to focus on more value--added projects needed to improve the competitiveness of the business. Cloud computing also enables more cost effective delivery of additional services such as disaster recovery.

CONCERNS TO CLOUD COMPUTING While cloud computing and storage is a great innovation in the field of computing, However, there are certain things that you need to be cautious about too. Some may say that there are no down sides to cloud computing, but users should not depend too heavily on these services. Although you may find all you need with a particular service, you have to consider the security and portability it offers and also make contingencies should the service be terminated abruptly. Moreover, an online service is more prone to threats than your PC. Having said that, however, most would agree that with cloud computing, the good outweighs the bad. The main concerns are Security and Privacy, Dependency (loss of control), Cost , Decreased flexibility ,Knowledge And Integration.

Security & Privacy: The biggest concerns about cloud computing are security and privacy. Users might not be comfortable handing over their data to a third party. This is an even greater concern when it comes to companies that wish to keep their sensitive information on cloud servers. While most service vendors would ensure that their servers are kept free from viral infection and malware, it is still a concern considering the fact that a number of users from around the world are accessing the server. Privacy is another issue with cloud servers. Ensuring that a clients data is not accessed by any unauthorized users is of great importance for any cloud service. To make their servers more secure, cloud service vendors have developed password protected accounts, security servers through which all data being transferred must pass and data encryption techniques. After all, the success of a cloud service depends on its reputation, and any sign of a security breach would result in a loss of clients and business. Dependency (loss of control): Quality problems with CSP(Cloud Service Providers).No influence on maintenance levels and fix frequency when using cloud services from a CSP.No or little insight in CSP contingency procedures. Especially backup, restore and disaster recovery.No easy migration to an other CSP. Higher costs: While in the long run, cloud hosting is a lot cheaper than traditional technologies, the fact that its currently new and has to be researched and improved actually makes it more expensive. Data centers have to buy or develop the software thatll run the cloud, rewire the machines and fix unforeseen problems (which are always there). This makes their initial cloud offers more expensive. Like in all other industries, the first customers pay a higher price and have to deal with more issues than those who switch later (although it would be very hard to create and improve new technologies without these initial adopters). Decreased flexibility: This is only a temporary problem (as the others on this list), but current technologies are still in the testing stages, so they dont really offer the flexibility they promise. Of course, thatll change in the future, but some of the current users might have to deal with the facts that their cloud server is difficult or impossible to upgrade without losing some data, for example.

Knowledge And Integration: More and deeper knowledge is required for implementing and managing SLA contracts with CSPs ,Since all knowledge about the working of the cloud (e.g. hardware, software, virtualization, deployment) is concentrated at the CSP, it is hard to get grip on the CSP. Integration with equipment hosted in other data centers is difficult to achieve. Peripherals integration. (Bulk)Printers and local security IT equipment (e.g. access systems) is difficult to integrate. But also (personal) USB devices or smart phones or groupware and email systems are difficult to integrate. SME Survey -25 May 2012 : According to the annual SME Survey, South Africa's longest-running survey of competitiveness in small businesses, just 9% of SMEs made use of the Cloud at the end of 2011. "Although the number of corporates expected to be using the Cloud this year will reach 52%, the number of SMEs doing the same will only reach 18%. While this does represent the proportion of SMEs using the cloud doubling this year, it will still mean that by the end of 2012 less than one in five SMEs will be utilising the Cloud. This means that SMEs are not benefiting from the multiple obvious benefits they stand to gain from cloud adoption.

CLOUD COMPUTING IN NEWS Recently an extract of The times of India read as follows In an era of rapid
technological obsolescence, no computing device's future is assured. The poor will be the greatest long-term beneficiaries of cloud computing because it eliminates the cost barriers to accessing the digital age. People can opt to use the most basic hardware, amounting to little more than a keyboard and screen. Gone is the need for large and expensive hard-drives and processors capable of operating them. All of this is premised on internet connectivity. Here again, the poor can piggyback on the rich.

Another news read - Cloud computing to the rescue! Stolen iPhone

tracked via iCloud - May 25, 2012 5:19pm : Cloud technology played the role of crime-fighter recently, helping track down the stolen iPhone of a passenger of a Disney cruise ship last April. Photos taken using the stolen iPhone were synced to Apple Inc.'s iCloud, allowing owner Katy McCaffrey to re-post the photos on her Facebook account. Security firm Sophos said McCaffrey even made an

album out of the photos titled "Stolen iPhone Adventures," complete with humorous captions. It eventually attracted the attention of netizens and the media - and eventually the attention of Disney, which said it has placed the employee under investigation.

ROUND ROCK, Texas, May 25, 2012 (BUSINESS WIRE)

Dell's new Desktop Virtualization capabilities combined by Dell's leadership position in Server, Storage and Networking solutions successfully positions the company as true end-to-end IT vendor Dell today announced it has completed its acquisition of Wyse Technology, the global leader in cloud client computing. The combination of Wyse's capabilities with Dell's existing desktop virtualization offerings position the company as the leader in the desktop virtualization, enabling it to offer true end-to-end IT solutions for customers and partners.

Another news in May 2012 read as follow German business software maker SAP, which on Wednesday announced the acquisition of web-based software maker Ariba for $ 4.5 bn, is eyeing smartphone-based software and cloud computing in Indian and Asian markets to drive growth. Our mobile software shares SAP infrastructure on smart. The company has 5,555 people on its payroll in India involved in software development.

SUMMARY Although cloud computing (IaaS and PaaS) is still in its infancy with standards and technologies continually evolving, it has so much promise to help organizations reduce cost, bring solutions to the marketplace faster, improve business flexibility and improve the quality of service. Careful planning is required to achieve these benefits and address the concerns outlined in this white paper. A lack of organizational preparation and technology planning will lead to suboptimal cloud implementations with unplanned costs and unintended consequences that degrade services to the end user. Private cloud computing will be the predominant IT service delivery model in the future.
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