Outsourcing Business to Cloud Computing Services

1. Outsourcing Business to Cloud Computing Services Etibar TAGHIYEV

2. introduction • Cloud Computing: • Refers to the offering of hardware and software resources as services across IT resources. • IT resources are offered as services that: • Affordable • Flexible • Attractive … to business • Realization of SOA (service oriented architecture)

3. introduction • BPO – Business Process Outsourcing • Company gives its non-core business functionality such as IT operations to 2ndexternal entities that specialize in those functions. • Estimated that, by 2011 the world-wide market for BPO will reach $677 billion.

4. topics • Four main topics will be explained in this presentation: • Cloud services • Public vs. private clouds • Cloud service customers • Virtual Private Business Environment

5. Cloud services Many products are offered as services under the umbrella of Cloud Computing:

6. Cloud services • Infrastructure as a service (IaaS): • Offered as a services: • Hardware resources: storage • Computing power: CPU, memory • Enables business to rent these resources rather than to buy • Cheap • Examples: • Amazon offers • S3 (simple storage service) for storage • EC2 (elastic compute cloud) for computing power • SQS (simple queue service) for network communication

7. Cloud services • Database as a service (DaaS): • Offered as a services: • Database • Examples: • Amazon offers • SimpleDB • Google • BigTable • Microsoft • SSDS (sql server data service) • Each DaaS provider supplies a query language to retrieve and manipulate data

8. Cloud services • Software as a service (SaaS): • Offered as a services: • Software applications • Examples: • Salesforce.com • Offers CRM (Customer Relationship Management) application as a service • Google • Web-based office applications: word processor, spreadsheets • Microsoft • SharePoint, CRM • Commercial applications can need a monthly subscription per user or can be billed per use

9. Cloud services • Platform as a service (PaaS): • Providing facilities to support the entire application development lifecycle: • Design & Implementation • Debugging & Testing • Deployment & Operation • Support … of Web applications and services on the Internet • Examples: • Microsoft Azure Services platform • Google App Engine

10. Cloud services

11. Cloud services • Additional services offered as services in cloud: • Monitoring • SLAs (Service Level Agreements) and report performance metrics • Management • Monitoring + responding to events rather than just report them • Integration • Allow users to develop adapters and mapping • Enable the interoperation of heterogeneous services

12. Public vs. Private clouds • Private clouds: • Privately owned by enterprise • Owners and users: • Enterprises & Large businesses • Examples: • Boeing, GM • Public clouds: • Offering for public use • Users: • Small business & Millions of individual consumers • Examples: • Amazon, Google, Microsoft

13. Public vs. Private clouds • Some of public clouds are extensions of companies private clouds: • Amazon, Google • Out-clouders (re-seller) • Providers that, re-sell unused computing resources • Source of income for enterprises, who rent out part of their IT resources

14. Cloud service consumers • Types of customer of Cloud Servies: • IT administrators • Cloud services: IaaS, DaaS, SaaS • Software developers • Cloud services: Iaas, DaaS, SaaS, PaaS • Managers and Business owners • Cloud services: SaaS • Business users • Cloud services: SaaS

15. Virtual Business operating Environment • Environment that allows consumers to create and run virtual business using cloud services

16. Virtual Business operating Environment • Realizing, Opportunities and Challenges • IT services layer • Service description and search • Difficult to search for service functionality as well as: • cost, performance, rating, usage control • SLA, data Privacy and security concern: • The location where customers data is kept is out of the customer’s control

17. Virtual Business operating Environment • Realizing, Opportunities and Challenges • Business process and integration layer • Problem is how to automatically discover various Web Services that fulfill a business service • How to automatically: • compose services • integrate data and services • SaaS users are business users (not expert IT people) and there is a need for lightweight solution for composition and integration

18. Conclusion • Benefits of using Cloud Computing service • Avoiding huge initial investment for: • Hardware & Software • Reducing operational, upgrade and maintenance costs • Higher availability compared to in-house solution • Access to a variety of software applications and features offered as SaaS

19. Conclusion • Benefits of using Cloud Computing service • Economics of scale • Highly optimized IT operations • Lower cost of purchasing services than building them in house: • Example: Google’s corporate email solution is approximately ten times less expensive than in house email solutions

20. Conclusion • Potential risks of using cloud services: • Loss of direct control of resources • Risk for security due to using shared external resources • Decreased reliability since the service providers may go out of business • Currently there is no environment to help in addressing the locating services, managing the whole lifecycle of engagement with cloud services

22. Thanks for the attentions