Chapter The Cloud “No, I mean 25 cents an hour and probably less.” • Uses a traditional, third-party hosting organization whose servers most certainly are not elastic • Web hosting costs rising rapidly • Lucas suggests provisioning Web servers and databases in the cloud • Costs: $50/mo plus 25-cents per hour for processing time used • Need to store new, large 3D printing design files • Storage requirement depends on sales volume Copyright © 2015 Pearson Education, Inc 6-2 Study Questions Q1: Why is the cloud the future for most organizations? Q2: What network technology supports the cloud? Q3: How does the cloud work? Q4: How organizations use the cloud? Q5: How can AllRoad Parts use the cloud? Q6: How can organizations use cloud services securely? Q7: 2024? Copyright © 2015 Pearson Education, Inc 6-3 Q1: Why Is the Cloud the Future for Most Organizations? • The cloud – Elastic leasing of pooled computer resources over the Internet – Elastic  Leased computing resources quickly increased or decreased dynamically, programmatically, organizations only pay for resources used – Flexibility for unpredictable demand while limiting financial risks Copyright © 2015 Pearson Education, Inc 6-4 Example of a Video Banner Ad Customer Copyright © 2015 Pearson Education, Inc 6-5 Pooled • Cloud resources are pooled – Many different organizations share same physical hardware through virtualization • Benefit from economies of scale – Average cost of production decreases as size of operation increases – Major cloud vendors operate enormous Web farms Copyright â 2015 Pearson Education, Inc 6-6 Apple Data Center in Maiden, NC Billion-dollar facility contains more than 500,000 sq ft Copyright © 2015 Pearson Education, Inc 6-7 Why Is the Cloud Preferred to In-House Hosting? Copyright © 2015 Pearson Education, Inc 6-8 Why Is the Cloud Preferred to In-House Hosting? (cont'd) Copyright © 2015 Pearson Education, Inc 6-9 Why Now? • Been around since 1960s – Time-sharing vendors provided slices of computer time on a use-fee basis • Cloud-based hosting advantageous – Cheap processors, data communication, data storage nearly free – Virtualization technology enables near instantaneous creation of new virtual machine – Internet-based standards enable cloud-hosting vendors to provide flexible, standardized processing capabilities Copyright © 2015 Pearson Education, Inc 6-10 Remote Access Using VPN: Apparent Connection Copyright © 2015 Pearson Education, Inc 6-46 Private Cloud for Inventory and Other Applications Copyright © 2015 Pearson Education, Inc 6-47 Accessing Private Cloud over a Virtual Private Network Copyright © 2015 Pearson Education, Inc 6-48 Using A Virtual Private Cloud Subset of a Public Cloud With Highly Restricted, Secure Access Copyright © 2015 Pearson Education, Inc 6-49 Using MIS Inclass 6: What, Exactly, Does That Standard Mean ???  • • • • • • ISO 27001 - What does it mean? What's purpose of this standard Does Microsoft Azure comply with ISO 27001? Does Amazon’s EC2 comply with ISO 27001? Is Microsoft in accordance with SAS 70? Is Amazon in accordance with SAS 70? Copyright © 2015 Pearson Education, Inc 6-50 Q7: 2024 • • • • • Cloud services faster, more secure, easier to use, cheaper Fewer organizations set up own computing infrastructure More pooling of servers across organizations More economies of scale achieved by cloud vendors Individuals, small businesses, large organizations readily obtain elastic resources at a very low cost Copyright © 2015 Pearson Education, Inc 6-51 Q7: 2024 (cont'd) • Large server farms employing few employees reduces number of small companies that install and maintain inhouse email exchange and other servers, and jobs • Cheap and elastic cloud services enable new small startups • Enable organizations to develop more information systems, cheaply and quickly, and increase demand for employees who know how to use and manage information systems Copyright © 2015 Pearson Education, Inc 6-52 Q7: 2024 (cont'd) • Foster new categories of work • Mobile systems will be standard • More remote action systems – Telediagnosis – Telesurgery – Telelaw enforcement – Drones and other military equipment – Live remote digital broadcasting Copyright © 2015 Pearson Education, Inc 6-53 Security Guide: You Said What? About Me? In Class? • Packet sniffing on networks, especially public wireless networks, is always a possibility and can be done by people outside the room that you don’t even see • Never send sensitive data except in an https or other encrypted connection • Never send anything over a public network that you wouldn’t be proud to have published the next day Copyright © 2015 Pearson Education, Inc 6-54 Guide: Is It Spying or Just Good Management • 92% of employers monitor employees’ email, telephone, and Internet use (2003) by using: – Key loggers – Log files – Packet sniffers – Text mining • First Amendment preserves your free speech regarding laws Copyright © 2015 Pearson Education, Inc 6-55 Active Review Q1: Why is the cloud the future for most organizations? Q2: What network technology supports the cloud? Q3: How does the cloud work? Q4: How organizations use the cloud? Q5: How can AllRoad Parts use the cloud? Q6: How can organizations use cloud services securely? Q7: 2024 Copyright © 2015 Pearson Education, Inc 6-56 Case Study 6: FinQloud Forever … Well, At Least For The Required Interval … • 1937, Securities and Exchange Commission (SEC) set out rules that required securities brokers' records to be stored on media that cannot be altered • 2003, SEC interpreted rule to enable storage of records on read-write medium, provided it included software to prohibit data alteration Copyright © 2015 Pearson Education, Inc 6-57 Components of the FinQloud System Copyright © 2015 Pearson Education, Inc 6-58 FinQloud Forever … (cont'd) • Excludes extrinsic controls authentication, passwords, and manual procedures because possible for such systems to overwrite records • Meets requirements of SEC’s Rule17a-3) and similar rule set out by Commodities Futures Trading Commission, when properly configured Copyright © 2015 Pearson Education, Inc 6-59 6-60 ... Tiers in Action! Sample of Commerce Server Page • Commerce server requests shoe’s data from  DBMS • DBMS reads from database then returns data to  commerce server.  • Server formats Web page with data and sends ... Inc 6-15 Abbreviations Used for Communications and Computer Memory Speeds Differ • Communications equipment, k stands for 1,000, not 1,024 as it does for memory • M stands for 1,000,000, not 1,024... Server formats Web page with data and sends  html version of page to user’s computer • Customer places items in shopping cart • Customer checks out, commerce server  program processes payment, schedules  inventory processing, arranges shipping.