EBU6502_cloud_computing_notes/1-3-economy.md
2025-01-04 16:53:59 +08:00

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# The economics of cloud computing
## Cloud Computing Service Model (Not important)
### Service oriented Technology
- Properties
- Logical view: abstraction of actual processes
- Message orientation: uses message to communicate
- Description orientation: described by machine executable metadata
- Granularity: use small operation, in order to perform complex tasks
- Network orientation: offered through networks
- Platform neutrality: standardized format
- Examples: SaaS, PaaS, IaaS
### Objectives:
- Shift computing, thus management and maintainence
- High QoS
- Transparent, and generic standards to boost acceptability
## Economic models
### Traditional cost model
- Upfront capital costs (CAPEX, capital expenditure): money spent at the
beginning of business to get the equipment
- Variable cost (OPEX, Operational expenditure): operational cost
- Calculation:
- Upfront capital costs + Variable costs
### Cloud cost model
- Calculation
- Variable costs (no upfront cost)
- Traditional IT cost minus the upfront capital costs (This sounds stupid
and absurd, I hope the profs are not going to make a quiz on this)
- Optimizing
- AWS Trusted Advisor: online service, that helps suggesting ways to
optimize costs
- Calculators:
- TCO: Total cost of ownership calculator, estimate the cost savings
when using AWS, compared to traditional IT systems
- Simple Monthly Calculator: estimate your AWS monthly bills, based on
business requirements
### Examples
- Amazon cloud options:
- Reserved:
- Reserved capacity: reserve for 1 to 3 years to get discount
- Reserved instances:
- All-Upfront RI: Pay everything at once to get huge discount
- Partial-Upfront RI: Pay part of the amount and get less savings
- No-Upfront RI: Pay nothing upfront, little saving
- On-demand instance: Pay as you go
- Dedicated instance: run on physical server
- Free: 12 months of free EC2
### Motivation for both parties
#### Subscribers:
- Cost savings
- Power
- Support, Maintainence
- Software licenses
- Increased profit
- Fancy words
- Innovation
- Productivity
- Competitive advantage
- Elastic
- Development experience
- Automation
- Reliability
- Scalability
#### Providers
- Shared resource, no waste
- Location independent
- Variety of customers that can serve
## Competition
- Offerings
- Free and educational
- Reserved
- Novelties: glacier file storage
- Assurance
- Risk mitigation
- Reputation
- Size
## All kinds of models
### Service delivery
- Definition: pre-packaged combination of IT resources, offered by cloud
provider as service
- Examples: [previous slide](/1-1-intro.md#cloud-service-models)
### Deployment
- Private cloud: on premises cloud
- Public cloud
- Community cloud: infra is shared between several organizations
- Hybrid cloud: public cloud with a private cloud, or on-premises data center
## Challenges and opportunities:
### Challenges
- Demand on features and support
- [Competition](#competition)
- [QoS](/1-2-sla-virtualization.md#qos)
- [SLA](/1-2-sla-virtualization.md#sla)
### Opportunities
- Jobs:
- AWS Cloud Practitioner
- AWS Solution Architect
- AWS Developer
- AWS DevOps Engineer
- AWS SysOps Administrator
- AWS Security Expert
- AWS Big Data Expert
- AWS Networking Expert
- AWS Data Engineer
- AWS Data Scientist