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Marginal Costs
How much money does it cost for the manufacturer to create one more unit
Network Effects
Expresses the idea that the value of a product or service increases at the number of users grow. As more people join, the system becomes more valuable to each individual customer. Social media is a perfect example
Switching Costs
If a company is using a certain piece of software and all employees have learned how and all data and documentation is stored within it but the company is dissatisfied with it and wants to switch. What will it cost to migrate data, test it, and ensure that the original business processes still work?
Traditional Software Industry
A vendor develops and maintains the software. Propriety = "Black Box"
Open Source
Instead of having a vendor develop a secretive, black-box software, it is shared development effort among people all over the place. Would be impossible without the capabilities that the internet provides
Cloud
The delivery of different services through the Internet; these resources include tools and applications like data storage, servers, databases, networking, and software
Virtualization
Having one computer run multiple jobs at the same time which saves a significant amount of money
Open Source Software Characteristics
~No license fee *TCO however
~Free redistribution
~Source code must be in good shape; the software should not be difficult to read
~Derived works
~Technology neutral (can work on any system)
Benefits of Having Access to Source Code
~Ability to fix bugs
~Modify behavior
~Add features
What does community do?
~Not simply just code
~Collaborative development
~Support resource
~Contribute!
Development Model
With commercial software, the vendor develops and maintains and has "black-box" propriety. With OSS, the community develops and maintains and it is open; anyone can view and modify
Distribution
Download includes source code and all data that has already been compiled
Commercial Support
~May be a requirement for adoption
~24/7 Help Desks
Democratization of IT
~Economic growth and development for less developed countries
~Levels the playing field for small businesses
~Allows access to tools that the "top dogs" use with OSS
~Leveling the playing field for users
The Cloud
A network of remote servers hosted on the Internet and used to store, mange, and process data in place of local servers or personal computers
SaaS
Software as a Service
~Examples: Salesforce, Google Apps, Office 365
~Don't have to buy the hardware
~Don't have to install the software
~Don't have to patch/upgrade
~Rapid deployment
~Scalable
~Operating expense
PaaS
Platform as a Service
~Don't have to buy hardware
~Don't have to build an expensive data center
~Install your own software on their servers
~24/7 support for the platform
~Potential to be scalable
~Operating expense
~Your own software on their servers
DaaS
Desktop as a Service
~Rapid Deployment
~Gold Image
~Publish applications
~Rapidly scale up or down
~Reduced support cost
~Any user device (BYOD)
~No data or user service
~Operating expense
Federated Authentication Technologies
~Single Sign-On
~Minimizes User Support
~Integration can be tricky
SSO
Single Sign On is the property of access control of multiple related, yet independent software systems. Automatic provisioning via corporate credentials
What factors lead to cloud computing being more energy efficient and environmentally friendly?
~Dynamic provisioning
~Multi-tenancy
~High server utilization
~Data center efficiency
~Salesforce data: Cloud is 95% more efficient
Cloud-First Strategy
When a company is deploying a new application, the first thing they say is: "Where can we put this in the cloud?" The only reason they would install locally is if it were impossible to do on the cloud
Cloud Computing Risks
Vendor Stability, Security Risks/Regulatory Compliance, Consumerization
Virtualization
A technique for running multiple "virtual computers" on a single physical host computer system. The computer has no idea that the software is running in an abstract environment. It is a way to take advantage of underutilized resources
Abstraction of Resources
Taking a physical resource and carving it up into multiple pieces and the presenting each of those pieces to a virtual computer as if it were the only person using it.
Workstation Virtualization
Multiple open softwares on a single physical host machine
Server Virtualization
Server virtualization is a virtualization technique that involves partitioning a physical server into a number of small, virtual servers with the help of virtualization software. In server virtualization, each virtual server runs multiple operating system instances at the same time.
How does server virtualization reduce a company's IT costs?
Consolidation and Server Rooms / Data Centers
How does virtualization impact server deployment and enterprise agility?
Reduced costs, faster turnaround, fewer errors, snapshots, patching, back ups
Snapshot
A set of reference markers for data at a particular point in time. A snapshot acts like a detailed table of contents, providing the user with accessible copies of data that they can roll back to
How can virtualization improve enterprise reliability and disaster recovery?
Redundancy/Reliability, Live migration, fail over, testing, disaster recovery
What are the top three server virtualization systems?
~VMWare, Microsoft Hyper-V, Xen (OSS), "Private Cloud"