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Cloud Computing Business Models
Abstract and Figures
This chapter is focused on business models for Cloud computing. The authors try to provide a clear picture of various available business models for both Cloud providers and consumers in terms of cost, necessary infrastructures, and expectations. The standard cost model for both service consumers and service providers (IaaS, PaaS, and SaaS) has been investigated while keeping in mind the existing interdependence of various levels. Meanwhile the various business models for different layers of the Cloud computing are listed, and their suitability is studied. In this regard, IaaS has been of particular interest since this layer clearly has the least barrier to entry (financing) and therefore presents the greatest opportunity to the SMBs who may be interested in competing in this layer. The chapter can be used as an adequate guideline for businesses who intend to enter the market as Cloud providers (investors, consultants, etc.), are already providers, or are either already Cloud consumers or intend to outsource their IT infrastructure and services using the Cloud.
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... The next layer is the PaaS layer upon which developers can build and test applications that run on the IaaS, either for the IaaS layer itself or for the SaaS layer above it. The topmost layer is the SaaS, and this deals exclusively with applications for end users [16]. ...
... CC service models today are deployed either as Private Clouds (cloud infrastructure provisioned for exclusive use by a single organization comprising multiple consumers), Community Clouds (cloud infrastructure provisioned for exclusive use by a specific community of consumers from organizations that have shared concerns such as: mission, security requirements, policies, and compliance considerations), Public Clouds (cloud infrastructure provisioned for open use by the general public) or Hybrid Clouds (cloud infrastructure comprising two or more distinct cloud infrastructures, whether private, community, or public, that remain unique entities, but are bound together by standardized or proprietary technology enabling data and application portability, such as cloud bursting for load balancing, between clouds). The interactions between these various modes of deployment are illustrated in Figure 3 [16]. ...
... IaaS Deployment Variants[16] ...
Cloud computing, the technology that makes it possible for computing resources to be provisioned to clients / subscribers over long distances, as well as its component technology – virtualization, which makes it possible for multiple guest systems to co-reside on a single host machine and share the computing resources of the host, have both become very popular technologies that have witnessed giant improvements in the 21 st century. This is a review paper that presents an overview of the technologies of virtualization and cloud computing, tracing their history and evolution down a timeline to what they have today, and providing pointers to prospects of future advancements to virtualization and cloud computing.
... The service models specified above directly define the three layers comprised in the core of most modern cloud computing infrastructure. Each of these layers offer the specified types of services to a particular segment of the consumer market while at the same time paying for the services provided by the preceding layer (except the IaaS layer) [11]. This is shown in figure 4. [12] The first / foundational layer of Cloud Computing is the IaaS layer. ...
... The next layer is the PaaS layer upon which developers can build and test applications that run on the IaaS, either for the IaaS layer itself or for the SaaS layer above it. The topmost layer is the SaaS, and this deals exclusively with applications for end users [11]. [11] The IaaS (the core/foundational model) variant of the CC service models could be deployed as Private Clouds (cloud infrastructure provisioned for exclusive use by a single organization comprising multiple consumers), Community Clouds (cloud infrastructure provisioned for exclusive use by a specific community of consumers from organizations that have shared concerns such as: mission, security requirements, policies, and compliance considerations), Public Clouds (cloud infrastructure provisioned for open use by the general public) or Hybrid Clouds (cloud infrastructure comprising two or more distinct cloud infrastructures, whether private, community, or public, that remain unique entities, but are bound together by standardized or proprietary technology enabling data and application portability such as cloud bursting for load balancing between clouds). ...
... The topmost layer is the SaaS, and this deals exclusively with applications for end users [11]. [11] The IaaS (the core/foundational model) variant of the CC service models could be deployed as Private Clouds (cloud infrastructure provisioned for exclusive use by a single organization comprising multiple consumers), Community Clouds (cloud infrastructure provisioned for exclusive use by a specific community of consumers from organizations that have shared concerns such as: mission, security requirements, policies, and compliance considerations), Public Clouds (cloud infrastructure provisioned for open use by the general public) or Hybrid Clouds (cloud infrastructure comprising two or more distinct cloud infrastructures, whether private, community, or public, that remain unique entities, but are bound together by standardized or proprietary technology enabling data and application portability such as cloud bursting for load balancing between clouds). The interactions between these various modes of deployment are illustrated in figure 5. ...
Cloud computing, and the technology of virtualization which drives its foundations, lead the pack of Information Technology (IT) solutions for business that have emerged and kept transforming businesses in recent years. While in acknowledgement of the fact that numerous researches have emerged in recent times on the concepts of virtualization and cloud computing, trying to address issues relating to management, complexity, operability, service delivery, security, amongst others, very little to no effort has been made to study how these technologies impact the dynamic business environment of the 21 st century and the benefits they could hold for businesses of the digital age. In light of this, this paper gives a theoretical review of the business environment as it was before and shortly after the advent of IT, in such a way that novices as well as experts in business and IT would be able to identify with and understand the interactions that have always existed amongst these industries. It further goes on to provide a detailed exposé on cloud computing and virtualization as it affects the business environment of the 21 st century, right from its inception and origins, to survey its history, basic concepts, current trends, modes of deployment and use, as well as the benefits they provide for businesses in our world. It brings in some proven industry perspectives and opinions and presents new insights into what the future has to offer with these twin technologies for both the worlds of business and IT.
... These service models directlydefine the three layers comprised in the core of most modern cloud computing infrastructure. Each of these layers provide varying services to a tailored consumer market segment while also subscribing to services offered by the supporting layer underneath it (except the IaaS layer) [12]. This is shown in figure 1: Figure 1: Cloud Computing Layers [13] The first / foundational layer of Cloud Computing is the IaaS layer. ...
... The next layer is the PaaS layer upon which developers can build and test applications that run on the IaaS, either for the IaaS layer itself or for the SaaS layer above it. The topmost layer is the SaaS, and this deals exclusively with applications for end users [12]. Virtualization is very important to cloud computing. ...
Virtualization, the technology that allows multiple guests (clients) to reside on a single host (provider) machine and share the resources of the host machine, is rapidly gaining prominence in the corporate business world of the 21 st century. Virtualization is a powerful technology for increasing the efficiency of computing services. However, besides its advantages, its flexibility also raises a number of questions regarding security, especially as it forms the bedrock of the revolutionary technology of cloud computing. Research has shown that Cloud Computing directly has the potential to tremendously impact positively the profit margins of leading 21st century businesses but the lack of satisfactory answers to some of these questions, especially by cloud service providers, has greatly limited the rate of adoption of full virtualization by many governments and organizations. This paper aims to elucidate and classify the questions and threats to virtualization, and suggest possible solutions to them.
... The authors of [216] and [217] studied the effect of cloud computing on the value chain and listed some of cloud computing's success factors which include simplicity of ...
The adoption of disruptive technologies is a very critical decision affecting the survival and continuity of businesses, startups to multinationals. Many researchers and decision makers consider technology adoption as a decision each organization should evaluate and decide upon. But are organizations really free to decide whether to adopt a specific technology or not? Many businesses do not have the privilege to dictate its needs to vendors, its services to customers or its business models to competitors.In this work we study the organization's decision on disruptive technology adoption at two levels. In the first level, we consider the economic forces (external forces) affecting the organization's decision. More thoroughly, we look at the market's response to disruptive technologies. In the second level, we consider the organizational forces (internal forces) affecting the organization's decision. More thoroughly, we look at the organization's needs and readiness for a disruptive technology.This work considers cloud computing as the studied disruptive technology and focuses its contribution on cloud computing adoption. In the organizational level, a Decision Support Solution is designed using collaborative filtering recommender systems to help decision makers evaluate their organizational needs and decide on the optimal technology mix suitable for their organization. In the economic level, the economic factors are modeled using Agent-Based Modeling. We consider cloud computing adoption in the 5G mobile networks as a specific case of cloud adoption. This specification is needed to allow accurate modeling of the economic factors. Two scenarios are considered, the first assumes perfect competition in the 5G market and the second assumes an oligopolistic market.
... There are also service delivery models in Cloud Computing which are Software as a Service (SaaS), Platform as a Service (PaaS) and Infrastructure as a Service (IaaS) [4]. In the SaaS model, users may gain access to applications running on the cloud only through various client interfaces, such as a web browser. ...
Privacy and Security of data in cloud database is a vital issue as it enables the storage, management and sharing of complex data in a secure platform. Cloud database, a technology that clings onto Cloud Computing paradigm, has privacy and security challenges such as lack of awareness and hegemony of place of data stored, transaction log of data, malicious act, amongst others. Also, ethical issue in the cloud surrounds trust issues from tenants, as the tenants find it difficult outsourcing critical information to a cloud service provider without the interference of a third party. This and many more issues were considered in this paper. This paper, therefore, discussed security, privacy and ethical concerns associated with cloud database by reviewing variety of literature's that discussed about these issues. Furthermore, the paper proposed a conceptual framework for mitigating the security and privacy issues inherent in the cloud database as a way of improving the services of the cloud service providers when deployed.
... The service models specified above directly define the three layers comprised in the core of most modern Cloud Computing Infrastructure. Each of these layers offer the specified types of services to a particular segment of the consumer market while at the same time paying for the services provided by the preceding layer (except the IaaS layer) (Strømmen-Bakhtiar & Razavi, 2011). This is shown in the figure below: Today, Cloud computing is gradually coming to bear in reality as the most formidable path to business and organizational growth and has gained rapid interest and prominence over the past decade. ...
The security of most modern network infrastructures and the internet, as well as the services and applications that rely on these, has faced continuous sabotage in terms of security in recent times. This has led to scepticisms and reservations on the part of businesses and administrators across various sectors in adopting and subscribing to network and internet–reliant / powered technologies (cloud computing, etc.) that have been confirmed with the ability to exponentially boost business profit and returns on revenue, while minimizing administrative and management costs. Current researches and techniques for securing cloud
computing and network infrastructure from DoS and DDoS attacks have proven to be less resource-centric, and more focused on identifying and filtering / blocking out packets, traffic, or applications that have been spotted as having faulted certain network policies or possess certain behaviours that are suggestive of an imminent attack. This identification, filtering / blocking has been largely based on certain analysis and compliance checks carried out on their content, payload delivery rate / time, or request-response latency. Due to the fact that the devastation and gross impact of DoS and DDoS-style attacks to network infrastructure rely more on the volume of the attack traffic / coordination than on the content, most of the
current techniques to mitigate this types of attacks fall short.
This research, however puts forward functional resource-centred models (with algorithms and flow diagrams) for preventing and controlling the impact of DoS and DDoS attacks on network-reliant and computing infrastructure through resource partitioning and monitoring for compliance to preset threshold limits of all applications, tasks and processes running on a system. Provisioned resources that have been subscribed for are partitioned into separate resource pools for serving different categories of applications, tasks and processes before, during and after an attack condition and monitoring is put in place to ensure compliance. Monitoring is implemented with a prototype system codenamed “resmon” and experimented
on the open-source Ubuntu Linux Desktop Operating System. A full, detailed Functional Flow Block Diagram (FFBD) of the system is given as well.
Efficiency and effectiveness of the monitoring process is proven and confirmed from visible observations and experimental deductions drawn from “no-attack” and attack Test Case Statistics and Performance Metrics of Response Time / Latency and System Cycle Time during simulated experimental Application-Layer DoS attacks.
This system is thus able to prevent and obfuscate DoS attacks that target the critical server and system resources of CPU time, Disk Cycle Time, Bandwidth and Memory, through the application-layer by securing resources at the most fundamental (Infrastructure) layer.
... and byStrømmen-Bakhtiar et al. (2011). They observed that cloud computing and thus SaaS has a recurring revenue model rather than the upfront costs, licence renewals and upgrades of perpetual software. ...
Cloud computing, especially Software-as-a-Service (SaaS), changes the IT processes of companies for application deployment, access, usage, maintenance, governance and management. In an age of Bring-Your-Own-Device, small businesses through to globally operating companies increasingly support their employees and customers with SaaS-applications that allow access to internal and external business information. Whether employees are in the office, at a client facility, at home or on the road, they need fast, easy access to business applications with any type of device. SaaS offers companies an interesting alternative to classical on-premise IT solutions. Cloud computing provides innovative applications, high connectivity and performance, cost reduction, flexibility and fast time to market with a minimum of effort. Cloud computing is a special form of outsourcing that has its roots in the fifties. Ten years ago similar concepts to cloud computing e.g. Application Service Providing (ASP) appeared and failed. But it seems that the willingness to use cloud computing is now much higher and the cost pressure effects of the financial crisis also motivate decision makers in companies to focus on cloud computing. This contribution presents the results of actual scientific literature investigations alongside interviews with owners of Software-as-a-Service Marketplaces. It describes several types of SaaS marketplaces using different business models to bring together customers and providers. It shows that SaaS marketplaces are two-sided and demonstrates how platforms are emerging that bundle features into significant value propositions for both sides. This work is relevant to firms who seek business solution recommendations beyond the focus of their on-premise-focussed advisors. It is also relevant for owners and potential owners of SaaS marketplaces and SaaS providers exploring alternatives in their distribution mix.
... The service models specified above directly define the three layers comprised in the core of most modern Cloud Computing Infrastructure. Each of these layers offer the specified types of services to a particular segment of the consumer market while at the same time paying for the services provided by the preceding layer (except the IaaS layer) [5]. This is shown in the figure 2below: Figure 2: Cloud Computing Layers [6] Virtualization is the technology that provides the abstraction that Cloud Computing enjoys by taking a physical resource such as a server and dividing it into virtual resources called virtual machines. ...
The Internet is growing to become a necessary and indispensable tool for the common man. Security has remained a hindrance to reaping the full, immense benefits of the Internet. Cybercrimes have been on the rise, and are becoming even easier to perpetrate even for the unskilled and naïve users. Denial of Service (DoS) is becoming one of the most common and most devastating of known cybercrimes that leave huge financial losses in its wake, with possibilities ofeven loss of lives in developed countries. This research proposes a model for partitioning of resource provisions in cloud computing infrastructure, as a means of mitigating against DoS attacks, especially at the Application Layer. This model focuses on securing critical computing resources of cloud computing infrastructure by providing different resource pools for servicing requests of applications and processes whose resource consumption levels are within safe limits, and for those that are suspected to be headed for a DoS. A full theoretical framework for this model is established with the use of an algorithm, a flowchart and a functional flow block diagram (FFBD).
Smart cities provide more benefits in terms of environment and increase the quality of life, efficiency in projects regarding smart cities, and solving urban problems (Benevolo, 2016). Internet of things (IoT), cloud computing, and big data collective intelligence would be three key elements to complete and perfect smart cities. Hence, with those technologies, smart cities would bring positive effects to our society. This chapter would illustrate the details of IoT, cloud computing and big data collection intelligence of smart cities.
As software services become more ubiquitous, a sustainable subscriber base and its associated revenue are key to the Software as a Service (SaaS) provider’s competitive advantage. This chapter contemplates ‘what makes a subscriber renew’ by extrapolating the findings and outcomes of prior chapters in the presentation of revenue renewal taxonomy via a Cloud Computing (CC) channel. The law of churn is discussed before presenting an experience factors framework to help visualise the decision process followed by a subscriber when considering whether to acquire, renew or attrit a SaaS solution. Alternative revenue recognition models are then presented alongside their likely impact on the provider’s bottom line.
Utility computing, elastic computing, and cloud computing are all terms that refer to the concept of dynamically provisioning processing time and storage space from a ubiquitous "cloud" of computational re- sources. Such systems allow users to acquire and re- lease the resources on demand and provide ready ac- cess to data from processing elements, while relegating the physical location and exact parameters of the re- sources. Over the past few years, such systems have become increasingly popular, but nearly all current cloud computing offerings are either proprietary or depend upon software infrastructure that is invisible to the research community. In this work, we present Eucalyptus, an open-source software implementation of cloud computing that uti- lizes compute resources that are typically available to researchers, such as clusters and workstation farms. In order to foster community research exploration of cloud computing systems, the design of Eucalyptus em- phasizes modularity, allowing researchers to experi- ment with their own security, scalability, scheduling, and interface implementations. In this paper, we out- line the design of Eucalyptus, describe our own im- plementations of the modular system components, and provide results from experiments that measure perfor- mance and scalability of an Eucalyptus installation currently deployed for public use. The main contribution of our work is the presenta- tion of the first research-oriented open-source cloud computing system focused on enabling methodical investigations into the programming, administration, and deployment of systems exploring this novel dis- tributed computing model.
Lately, a new computing paradigm has emerged: "Cloud Computing". It seems to be promoted as heavily as the "Grid" was a few years ago, causing broad discussions on the differences between Grid and Cloud Computing. The first contribution of this paper is thus a detailed discussion about the different characteristics of Grid Computing and Cloud Computing. This technical classification allows for a well-founded discussion of the business opportunities of the Cloud Computing paradigm. To this end, this paper first presents a business model framework for Clouds. It subsequently reviews and classifies current Cloud offerings in the light of this framework. Finally, this paper discusses challenges that have to be mastered in order to make the Cloud vision come true and points to promising areas for future research.
Early in 2001, after a damning public report by the Auditor-General, the Australian Federal Government was forced to abandon its highly promoted "whole of government" infrastructure outsourcing initiative. This about-face was greeted in the press with reports that the initiative was a "fiasco". Yet a four-year case study of the initiative suggests a more complex picture. The initiative can be viewed in a quite different light on the basis of comparisons with a contemporary survey of 240 Australian organisations engaged in IT outsourcing. This reveals that many of the negative outcomes associated with this "fiasco" are typical of those experienced by large Australian organisations. This has important implications for decision makers confronted with choices about sourcing IT service delivery.
The term cloud computing is sometimes used to refer to a new paradigm – some authors even speak of a new technology – that
flexibly offers IT resources and services over the Internet. Gartner market research sees cloud computing as a so-called “emerging
technology” on its way to the hype. When looking at the number of searches for the word pair “cloud computing” undertaken
with the Google search engine one can get an imagination of the high interest on the topic. Even terms like “outsourcing”,
“Software-as-a-Service (SaaS)” or “grid computing” have already been overtaken.
Utility computing is a service provisioning model which will provide adaptive, flexible and simple access to computing resources,
enabling a pay-per-use model for computing similar to traditional utilities such as water, gas or electricity. On the other
hand, grid technology provides standard functionality for flexible integration of diverse distributed resources. This paper
describes and evaluates an innovative solution for utility computing, based on grid federation, which can be easily deployed
on any infrastructure based on the Globus Toolkit. This solution exhibits many advantages in terms of security, scalability
and site autonomy, and achieves good performance, as shown by results, mainly with compute-intensive applications.
The utility business model is shaped by a number of characteristics that are typical in public services: users consider the service a necessity, high reliability of service is critical, the ability to fully utilize capacity is limited, and services are scalable and benefit from economies of scale. This paper examines the utility business model and its future role in the provision of computing services.