Notes: Introduction to Cloud Computing (CSUN)

Instructor Profile and Course Context

• Swapan Ghosh, Assistant Professor of Management at CSUN
  • $25^+\text{ years}$ of corporate management experience
  • $6\text{ years}$ of teaching experience in undergraduate and graduate programs
  • Founded $2$ startups with successful exits
  • Education:
  • Ph.D. in Management, Loughborough University, U.K.
  • MBA, Santa Clara University, CA
  • MS in Industrial Engineering – IIT Dhanbad, India
  • BS in Mining Engineering – IIT Dhanbad, India
  • Research Focus: Digital Transformation, Digital Strategy & Innovation
  • Google Scholar: https://scholar.google.com/citations?user=4xEfdAkAAAAJ&hl=en&o i=ao 2

Module 1: Outline

• Topic: Cloud computing fundamentals
• Subtopics:
  • Cloud deployment models
  • IaaS, PaaS, & SaaS service models
• Learning objective: Understand how cloud concepts map to business needs and IT delivery models

Quick Reflection Question

• "Who here uses cloud-based apps daily? Which ones?" (to stimulate personal relevance and examples)

On-Premise vs Cloud: Core Idea

• Diagrammatic comparison (On-Premise vs Cloud):
  • On-Premise: traditional where infrastructure is owned/operated by the organization
  • Cloud: external, pay-per-use model with scalable resources
• Visual cue: Aberdeen Group concept (illustrative)

What is Cloud Computing? Definition and Core Components

• Core idea: Delivering on-demand computing service over the Internet on a pay-as-you-go basis
• Typical components involved in cloud services:
  • Server
  • Storage
  • Mobile devices
  • Applications
  • Database
• Service delivery models referenced: Private cloud, Hybrid computing, Public cloud
• Supporting images: Atlassian (illustrative, not reproduced here)
• Formal definition: $\text{Cloud Computing} = \text{On-demand computing services delivered over the Internet with pay-as-you-go pricing}$

Deployment Models: Public, Private, Hybrid Cloud

• Public Cloud: Services delivered over the public Internet and available to anyone
• Private Cloud: Cloud infrastructure operated solely for a single organization, either on-premises or hosted
• Hybrid Cloud: A composition of two or more clouds (private, public) that remain unique entities but are bound together
• Analogy: You are going to your friend's house to access resources via different transport options (bus, own car, taxi) to illustrate access, control, and ownership differences
• Security and governance considerations vary by model

What Are the Advantages and Trade-offs of On-Premise vs Cloud?

• On-Premise advantages:
  • More control over infrastructure and data
  • Potentially stronger physical security and compliance posture
  • Customizable to specific legacy systems
• On-Premise disadvantages:
  • Expensive upfront capital expenditure (CapEx)
  • Requires in-house expertise and ongoing maintenance
  • Limited scalability; capacity planning is critical
• Cloud advantages:
  • Pay-for-what-you-use pricing (operational expenditure, OpEx)
  • Easy to scale up or down (elasticity)
  • No requirement to maintain a dedicated IT team for core infrastructure
  • Data and applications can be accessible from anywhere (with proper security)
• Cloud disadvantages/challenges:
  • Potential concerns about data governance, vendor lock-in, and regulatory compliance
  • Dependency on internet connectivity

On-Premise vs Cloud: Flexibility, Updates, and Collaboration

• On-Premise:
  • Less Flexible
  • Manual updates
  • Less collaboration across teams due to siloed systems
  • Data access can be difficult from outside the organization
• Cloud:
  • More Flexible
  • Automatic updates
  • Enhanced collaboration across diverse teams
  • No dedicated IT team required for basic operations
  • Data can be accessed from anywhere (with connectivity and security controls)

Group Activities: Pros/Cons Exercise

• Divide class into two teams:
  • Group 1: CIO of Wells Fargo
  • Group 2: CEO of a startup
• Task: List pros/cons of On-Premises vs Cloud and defend the best choice for their scenario

Deployment Model Summary (Visual/Table in Lecture)

• Deployment models: Public Cloud, Private Cloud, Hybrid Cloud
• Service models: IaaS, PaaS, SaaS
• Core question: How is cloud accessed and paid for across models?

Deployment Model Analogies and Access Models

• Analogy: Choosing how you access resources depending on ownership and access needs
  • Public cloud: accessible by many, managed externally
  • Private cloud: accessible within a single organization, controlled by you
  • Hybrid: mix of both, with data/workloads moved as needed
• Access perspectives: Public cloud services are broadly accessible; private cloud is restricted

Public Cloud Providers: Examples

• Public Cloud providers include: Amazon Web Services (AWS), Microsoft Azure, Google Cloud Platform (GCP)
• Notable data point: Public cloud market activity and adoption across industries

Private Cloud: Security and Control

• Private cloud defined: Running cloud services in your own data center or a dedicated environment
• Emphasis on security governance and customization to meet compliance needs

Hybrid Cloud: Combined Approach

• Public + Private Cloud strategy
• Allows sensitive workloads to stay in private infrastructure while leveraging public cloud for elasticity

Service Models: How You Pay for Your Cloud Service

• Cloud computing service models (service delivery perspective):
  • IaaS: Infrastructure as a Service
  • PaaS: Platform as a Service
  • SaaS: Software as a Service
• How you pay aligns with the model (e.g., resources, platform, software hosted by vendor)
• Major message: Different business needs map to different service models

What Model Is Good For You?

• Decision guidance visuals from slides (checkmark beside a preferred option):
  • IaaS for virtual machines and flexible infrastructure
  • PaaS for platform to build software products
  • SaaS for ready-to-use software without maintaining IT equipment
• Guiding principle: Choose based on control, maintenance burden, and speed to value

IaaS, PaaS, SaaS: Definitions and Examples

• Infrastructure-as-a-Service (IaaS):
  • Provides basic computing infrastructure
  • Pay-for-what-you-use model
  • Examples: $\text{AWS},\ \text{Azure},\ \text{GCP},\ \text{Oracle IaaS}$
• Platform-as-a-Service (PaaS):
  • Provides cloud platform and runtime to develop, test, and deploy applications
  • Developers can build applications without managing underlying hardware/OS
  • Examples: $\text{AWS},\ \text{Azure},\ \text{GCP},\ \text{Oracle PaaS}$
• Software-as-a-Service (SaaS):
  • Providers host and manage applications; users access via the internet
  • Pay-per-use or subscription
  • Examples: $\text{Gmail},\ \text{Office 365},\ \text{Google Apps}$

Difference Between IaaS, PaaS & SaaS: Metaphor

• Cake baking analogy to illustrate responsibility and control:
  • On-Premises: Made at home – high control, high responsibility, all ingredients and tools owned
  • IaaS: Buy & bake – you manage applications and data; vendor handles virtualization and infrastructure
  • PaaS: Cake delivery – vendor provides platform/runtime; you manage apps and data
  • SaaS: Dine out – vendor provides complete software experience; you use the service with minimal management
• Visuals in slides show the shift of responsibility from you to vendor across models

On-Premises vs IaaS vs PaaS vs SaaS: Detailed Differences (Expanded)

• On-Premises (Traditional):
  • Managed by you
  • Layers: Applications, Data, Runtime, Middleware, OS, Virtualization, Servers, Storage, Networking
• IaaS (Infrastructure):
  • Managed by you: Applications, Data
  • Vendor manages: Runtime, Middleware, OS, Virtualization, Servers, Storage, Networking
• PaaS (Platform):
  • Managed by Vendor: Applications, Data, Runtime, Middleware, OS, Virtualization, Servers, Storage, Networking
• SaaS (Software):
  • Managed by Vendor: Applications, Data, Runtime, Middleware, OS, Virtualization, Servers, Storage, Networking
• Emphasis: Control vs responsibility shifts from you to vendor as you move from On-Premises -> IaaS -> PaaS -> SaaS

How Cloud Revolutionized Businesses

• Empowered incumbents and startups by enabling rapid experimentation and scaling
• Born-in-cloud organizations adopt cloud as a fundamental operating model
• A new dawn for operations: cloud-enabled efficiency and agility
• AI revolution and data power amplify benefits of cloud ecosystems
• CIOs become key executives in cloud strategy and governance decisions

Risks and Challenges in Cloud Computing

• Key risks highlighted:
  • Reduced visibility into full stack and governance
  • API misuse or insecure APIs
  • Multi-tenancy challenges (shared resources)
  • Data breaches and data privacy concerns
  • Vendor lock-in risk (difficult to switch vendors)
  • Cybersecurity risks (threats to cloud-based assets)
• Practical implication: Organizations must implement strong security controls, monitoring, and vendor management

Cloud Providers Market Snapshot

• AWS is a leader in IaaS & PaaS markets
• Worldwide enterprise spending on cloud infrastructure in $2023$ was $\$270\text{B}$
• Market growth: $20\%$ CAGR
• Source reference: Statista 2023

Class Activities and Further Learning

• Activity: Watch video on cloud computing
  • Link provided in slides: YouTube video (URL in lecture materials)
• Group activity: Discuss examples of cloud computing in any industry with peers at your table

Q&A and Open Discussion

• Encourage questions about deployment vs service models
• Explore real-world scenarios and trade-offs (cost, control, risk, compliance)

Connections to Foundational Principles and Real-World Relevance

• Alignment with IT governance, cybersecurity, and risk management paradigms
• Cloud economics: understanding CapEx vs OpEx; cost optimization through scaling and autoscaling
• Strategic decision-making: selecting deployment and service models that balance control, speed, and total cost of ownership
• Ethical and practical implications: data sovereignty, privacy, vendor relationships, and equitable access to cloud resources

Summary Takeaways

• Cloud computing provides on-demand, pay-as-you-go access to computing resources over the Internet
• Deployment models (Public, Private, Hybrid) address ownership, control, and governance considerations
• Service models (IaaS, PaaS, SaaS) define the level of managed services and where the customer retains control
• Real-world decisions hinge on needs for control, cost, speed, and risk management
• The cloud landscape is dynamic, with market leaders and significant annual growth; ongoing attention to security and vendor management is essential