It deals with cloud computing and it's effect on economy.

1. CLOUD
COMPUTING AND
ITS IMPACT ON
ECONOMY !!

2. Flow Of Presentation
• What is cloud computing
• Deployment Models
• Cloud Economics
• Limitations and Security issues
• Cloud In news
• Pfizer Case Study
• Conclusion

3. What Is Cloud Computing ?
• Cloud computing is internet based computing where virtual shared
servers provide infrastructure, platform, devices, and other
resources and hosting to customers on a pay as you use basis.
• All information that a digitized system has to offer is provided as a
service in the cloud computing model.
• Users can access these services without having a previous know
how on managing the resources involved.
• Customers do not own the physical infrastructure , rather they rent
the usage from a third party provider.
• They consume resources as a service and pay only for resources
that they use.

4. For eg :
One way to think of cloud computing is to
consider your experience with email. Your
email client, if it is
Yahoo!, Gmail, Hotmail, and so on, takes care
of housing all of the hardware and software
necessary to support your personal e-mail
account.

5. The cloud makes it possible for you to access your
information from anywhere at any time. While a traditional
computer setup requires you to be in the same location as
your data storage device, the cloud takes away that step.

6. Deployment Models Of Cloud

7. Cloud Economics
• Cloud technology standardizes and pools IT resources and
automates many of the maintenance tasks done manually
today. Cloud architectures facilitate elastic consumption, self-
service, and pay-as-you-go pricing.
• Cloud also allows core IT infrastructure to be brought into
large data centres that take advantage of significant
economies of scale in two areas:
• Supply-side savings. Large-scale data centres (DCs) lower
costs per server.
• Demand-side aggregation. Aggregating demand for
computing overall variability, allowing server utilization rates
to increase.

8. Supply-Side Economies of Scale
• Cloud computing combines the best economic properties of
mainframe and client/server computing. Cloud computing is not a
return to the mainframe era but in fact offers users economies of
scale and efficiency that exceed those of a mainframe, coupled with
modularity and agility beyond what client/server technology
offered, thus eliminating the trade-off.

9. • Infrastructure labour costs: While cloud computing significantly
lowers labour costs at any scale by automating many repetitive
management tasks, larger facilities are able to lower them further
than smaller ones.
• This allows IT employees to focus on higher value-add activities like
building new capabilities and working through the long queue of
user requests every IT department contends with.
• Security and reliability: Often cited as a potential hurdle to public
cloud adoption, increased need for security and reliability leads to
economies of scale due to the largely fixed level of investment
required to achieve operational security and reliability.
• Large commercial cloud providers are often better able to bring
deep expertise to bear on this problem than a typical corporate IT
department, thus actually making cloud systems more secure and
reliable.

10. Demand-Side Economies of Scale
• Overall cost of IT determined not just by the cost of capacity, but
by the degree to which the capacity is efficiently utilized. need to
assess the impact of demand aggregation on costs of actually
utilized resources (CPU, network, and storage).
• Each application runs on its own physical server. Utilization of
servers has traditionally been extremely low, around 5 to 10%.
• The primary benefit of virtualization is that fewer servers are
needed to carry the same number of workloads.
• A key economic advantage of the cloud is its ability to address
variability in resource utilization.. The larger the pool of
resources, the smoother the aggregate demand profile, the
higher the overall utilization rate, and the cheaper and more
efficiently the IT organization can meet its end-user demands.

11. Overall impact
• The combination of supply-side economies of scale in server
capacity (amortizing costs across more servers), demand-side
aggregation of workloads (reducing variability), and the multi-
tenant application model (amortizing costs across multiple
customers) leads to powerful economies of scale.

12. • Fig. shows the output for a workload that
utilizes 10 % of a traditional server. The
model indicates that a 100,000-server
data centre has an 80% lower total cost
of ownership (TCO) compared to a 1,000-
server data centre.
• What impact will the Cloud Economics
we described have on the IT budget?
• Cloud impacts infrastructure costs, costs
of supporting and maintaining existing
applications, and new application
development costs . The supply-side and
demand-side savings impact mostly the
infrastructure portion, which comprises
over half of spending

13. Elasticity is a game-changer !

14. How cloud computing can cut
costs for your small business
?
Smaller Lower
Upfront Energy Bills
Investment
Free
Yourself
Maximize Put Busy
Worker Work on
Productivity Autopilot

15. Limitations and
Security Issues
Availability Data Privilege
Of Service Security Abuse
Scaling Data Unpredictable
Resources Location Performance
Lack Of Knowledge

16. Cloud In News
• Over half of the NGOs plan to move IT into the cloud :
• A survey by non-profit group TechSoup Global found that 53%
of 10,500 respondents plan to move a "significant portion" of
their IT to the cloud within three years. (NGOs) from 88
countries -- also found that 90% of respondents worldwide are
using at least one cloud computing application. 47% of
respondents said that cost-related changes and ease of setup
would be the greatest motivators for moving their IT to the
cloud. 79% saying that the greatest advantage of cloud is easier
software or hardware administration. However, the non-profit
group added that more education is needed to support and
take full advantage of the benefits of cloud computing
regarding costs, productivity and collaboration.

17. • India government to convert data centres
into clouds
• The Indian government has unveiled plans to convert its states'
data centre into privately run, pay-as-you-go clouds. To address
issues typically faced by different departments at the
state, such as long IT infrastructure procurement cycles, under
utilisation of resources, need for dynamic
scalability, appropriate disaster recovery of applications and
data and for simplifying IT infrastructure provisioning and
availability to line departments ... it would be required to
leverage the benefits of cloud-enabled services in State Data
Centres. IT companies like HP, IBM, Cisco and Dell" have been
invited to tender for the projects.

18. Pfizer Case Study
• Problem faced : used regimented approach to data integration
using standard ETL tools. Ended up taking longer and costing than
planned. Was not able to meet the customer’s demand.
• Solution : Data Virtualization : Simple and flexible. It allowed rapid
prototyping of solutions and hence ensured on time delivery of
the product to the customers. Easy and user friendly interface.
Integration of data requires only basic SQL knowledge. Learning
the intricacies was a problem initially.

19. CONCLUSION
• Our take :
• We are experiencing a disruptive moment in the history of
technology, with the expansion of the role of the internet and the
advent of cloud-based computing.
• Despite the proliferation of cloud services which can improve the
functioning of large organizations, there has not been much
enterprise adoption of the cloud. Cloud computing services are
used by more then 80% of the users.
• However awareness of the term is less then 40% with even lower
level of comprehension. Even though the most popular cloud
services are social networking, e-mail and online shopping. But
people do not realize they are using it.
• Even though the previously explained benefits cannot be ignored
, questions like How reliable are such services? What about
privacy? Don't I lose too much control? remain unanswered..

20. THANK YOU !!!