Cloud Computing: An Introduction

Introduction to Cloud Computing

• Cloud computing is the on-demand delivery of IT resources over the internet
• It enables access to computing power, storage, and applications without the need for physical hardware
• It utilizes a pay-as-you-go pricing model
• This helps organizations manage costs by only paying for the resources they consume
• Cloud services are hosted in data centers globally
• This provides scalability and flexibility for businesses of all sizes
• Cloud-based solutions allow organizations to focus on software and applications rather than physical resources
• It enables rapid solution deployment, reducing the time and cost associated with traditional IT
• Cloud computing supports varied applications, from web hosting to data analytics thereby enhancing business agility

Traditional vs. Cloud Computing Models

• Traditional computing requires significant upfront investment and ongoing maintenance costs for physical hardware
• The hardware procurement cycle can be lengthy
• This leads to potential resource shortages or excess capacity
• Businesses can quickly adjust their resource usage based on demand, with cloud computing allowing for elastic scaling of resources
• Cloud services enable on-demand resource provisioning, avoiding over-provisioning or under-utilization of hardware
• The cloud model shifts the mindset from managing hardware to managing software and services
• This flexibility enables businesses to innovate faster and respond to market changes more effectively

Advantages of Cloud Computing

• Cost efficiency - Reduces capital expenditure by eliminating the need for physical hardware and maintenance costs
• Scalability - Resources can be scaled up or down based on demand
• Businesses can quickly adapt to changing needs
• Accessibility - Cloud services are accessible from anywhere with an internet connection
• It facilitates remote work and collaboration
• Disaster Recovery - Cloud providers often include backup and recovery solutions, enhancing data security and business continuity
• Automatic Updates - Cloud services are typically maintained by the provider
• This ensures that users always have access to the latest features and security updates
• Focus on Core Business - Outsourcing IT infrastructure management lets organizations concentrate on their core business activities

Introduction to Amazon Web Services (AWS)

• AWS is a comprehensive cloud computing platform by Amazon
• AWS offers computing power, storage, and networking
• AWS operates globally with data centers that ensure high availability and low latency
• AWS offers IaaS, PaaS, and SaaS to cater to different business needs
• The platform supports simple websites to complex machine learning models
• It is versatile for developers and businesses
• AWS uses a pay-as-you-go pricing model, which allows users to pay only for consumed resources, offering cost savings
• The AWS ecosystem has many integrated tools and services
• This can enhance productivity and efficiency

AWS Cloud Adoption Framework (CAF)

• The AWS Cloud Adoption Framework (CAF) helps organizations transition to the cloud
• It offers a structured approach to cloud adoption
• It includes six perspectives: Business, People, Governance, Platform, Security, and Operations
• Each perspective addresses different aspects of cloud adoption
• The framework guides organizations in assessing current capabilities
• It also helps to identify areas for improvement during the cloud migration process
• AWS CAF emphasizes aligning cloud strategies with business goals to maximize cloud computing benefits
• It provides best practices and resources to develop a comprehensive cloud adoption strategy
• Minimizing risks and ensuring a smoother transition to cloud-based solutions is achieved by following the AWS CAF

Introduction to the AWS CAF

• AWS CAF provides guidance and best practices for organizations transitioning to the cloud
• It emphasizes the alignment of people, processes, and technology for successful cloud adoption
• The framework identifies gaps in skills and processes required for cloud migration

Perspectives of AWS CAF

• The AWS CAF includes six perspectives: Business, People, Governance, Platform, Security, and Operations
• Each perspective has capabilities that guide organizations in their cloud journey
• Understanding an organization's current and target states is crucial for cloud adoption

The Importance of Alignment in Cloud Adoption

• Successful cloud adoption requires collaboration across all organizational units, not just IT
• Stakeholders must support changes in budgeting, technology management, and operational processes
• Organizations should set clear goals and processes to facilitate the transition to the cloud

Introduction to AWS

• Cloud computing is the on-demand delivery of IT resources via the internet
• It uses a pay-as-you-go pricing model
• This allows businesses to scale their infrastructure as needed
• It enables them to treat their infrastructure as software, which facilitates easier management and deployment of resources

Cloud Service Models

• Infrastructure as a Service (IaaS) provides virtualized computing resources over the internet
• Platform as a Service (PaaS) offers hardware and software tools over the internet
• This is typically for application development
• Software as a Service (SaaS) delivers software applications over the internet on a subscription basis

Cloud Deployment Models

• Public Cloud consists of services offered over the public internet
• Private Cloud is an exclusive cloud infrastructure for a single organization
• Hybrid Cloud is a combination of public and private clouds
• It Allows sharing data and applications

AWS Services and Their Analogies

• Amazon EC2 (Elastic Compute Cloud) is similar to on-premises servers, providing scalable computing capacity
• Amazon EBS (Elastic Block Store), Amazon EFS (Elastic File System), and Amazon S3 (Simple Storage Service) serve as storage solutions comparable to DAS, SAN, and NAS respectively
• Amazon RDS (Relational Database Service) functions similarly to traditional RDBMS, offering managed database services
• AWS services allow the implementation of virtually any traditional IT solution in a cloud environment, enhancing flexibility and scalability

Advantages of Cloud Computing

• Trade Capital Expense for Variable Expense - Transitioning from capital expenses allows companies to pay only for resources consumed
• This reduces upfront costs and enables better financial management
• Benefit from Massive Economies of Scale can allow cloud providers offer lower prices
• Cloud providers can do this because of the aggregation of resources from numerous customers, resulting in significant cost savings for users
• Stop Guessing Capacity - Cloud computing eliminates need for capacity planning
• This allows businesses to scale resources up or down depending on real-time needs, thereby avoiding wasted resources
• Increase Speed and Agility - Ability to provision IT resources quickly enhances organizational agility
• It also enables faster development and deployment of applications
• Focus on Core Business occurs because companies can concentrate on core business objectives rather than maintaining data centers
• Go Global in Minutes occurs since AWS allows rapid deployment of applications across multiple regions
• This can improve latency and user experience for global customers

Understanding AWS

• AWS is a secure cloud platform that offers global cloud-based products
• It provides on-demand access to IT resources
• The platform includes services for computing, storage, networking, databases, and management tools
• These are designed to work together seamlessly
• AWS runs on a pay-as-you-go model
• This enables users to transform capital expenses into operational expenses
• It only allows the user to pay for what they use
• AWS services are modular and combined to create complex applications

Example of AWS Service Integration

• A database application might utilize:
• Amazon EC2 for processing incoming data from customers
• Amazon S3 for storing data objects generated by the application
• Amazon DynamoDB for managing and indexing the data efficiently
• Amazon VPC for secure networking and resource isolation

Introduction to AWS Services

• AWS offers global cloud-based products designed to work together and enhance flexibility and scalability
• Services are categorized into compute, storage, database, networking, security, and management
• The choice of services depends on business goals and technological requirements

Compute Services

• Amazon EC2: Offers full control over computing resources, suitable for applications that need customization
• AWS Lambda: Runs code without managing servers, ideal for event-driven architectures
• AWS Elastic Beanstalk: Automates deployment and scaling of applications whilst simplifying management for developers

Storage Services

• Amazon S3 provides object storage for data backup, archiving, and analytics
• Amazon EBS provides block storage for use with Amazon EC2
• It enables persistent storage for applications
• Amazon Glacier provides low-cost storage for data archiving and long-term backup

Database Services

• Amazon RDS is a managed relational database service that makes it simple to set up, use, and scale databases
• Amazon DynamoDB is a NoSQL database service with high availability and performance
• It is suitable for applications requiring low-latency data access
• Amazon Redshift is a data warehousing service that allows for analytics on large datasets

Accessing AWS Services

• AWS Management Console: A GUI for managing AWS services, user-friendly for beginners
• AWS Command Line Interface (CLI): A tool for managing AWS services, suited for automation and scripting
• Software Development Kits (SDKs): Libraries for programming languages for interaction with AWS services

Common Use Cases for AWS Services

• Web Applications: Use AWS Elastic Beanstalk for deployment and scaling of web apps
• Data Processing: Utilize AWS Lambda for serverless data processing tasks
• Backup and Recovery: Implement Amazon S3 and S3 Glacier for data archival and storage

Introduction to the AWS Cloud Adoption Framework (CAF)

• The AWS Cloud Adoption Framework (CAF) includes six perspectives: Business, People, Governance, Platform, Security, and Operations

Perspectives of the CAF

• Each perspective is essential for managing stakeholders
• The framework allows organizations to identify gaps in their cloud adoption journey
• It also allows for prescriptive workstreams to address these gaps

The Importance of Alignment in Cloud Adoption

• The Business Perspective involves business managers and finance managers aligning business and strategies
• The People Perspective focuses on human resources and building an agile organization
• The Governance Perspective engages CIOs and program managers to maximize IT investment value, whilst minimizing risks

Technical Perspectives of the AWS CAF

• The Platform Perspective involves CTOs and IT managers who implement cloud solutions, including migration strategies
• The Security Perspective engages CISOs and security analysts to ensure compliance with security objectives
• The Operations Perspective focuses on IT operations managers and identifies process changes for cloud adoption

Key Takeaways from the AWS CAF

• Cloud adoption is a gradual process
• Developing cloud adoption plans ensures stakeholder inclusion

Summary of learned Module

• Understanding cloud computing models
• Recognizing AWS service types
• Reviewing the AWS Cloud Adoption Framework to understand its role in guiding organizations

Fundamentals of AWS Pricing

• AWS pricing has 3 drivers: compute, storage, & outbound data transfers
• free inbound data transfers and data transfer between AWS services in the same region, but outbound data transfer incurs charges.

Total Cost of Ownership (TCO)

• It includes all costs with cloud services
• It also includes direct and indirect costs
• Understanding TCO helps orgs. decide about cloud investments/budget allocations

AWS Pricing Calculator and Billing Dashboard

• The AWS Pricing Calculator computes costs depending on usage patterns and service selections
• The Billing Dashboard gives visibility into costs, so orgs. can manage AWS spending

Key Aspects of AWS Pricing

• TCO is necessary for comparing across AWS deployments
• The AWS Pricing Calculator estimates costs and helps find savings before building solutions
• AWS Billing + Cost Management tools shows usage/costs, so users can optimize AWS implementations

AWS Cost Management Tools

• AWS Pricing Calculator estimates costs, solution modeling, and exploring pricing options
• AWS Bills shows billing information for services used
• AWS Cost Explorer visualizes spending patterns

AWS Budgets and Reports

• AWS Budgets sets usage budgets and alerts users when they exceed thresholds
• AWS Cost and Usage Reports shows data on AWS usage + costs, which can identify costs

Activities

• Support plan scavenger hunt + create cost estimates using the AWS Pricing Calculator
• Complete knowledge check to assess understanding of key concepts covered
• AWS operates on a utility-style pricing model, meaning customers pay only for the resources they consume
• Gives flexibility for users because they can use services without long-term commitments, and this reduces financial risk
• Pricing is transparent because charges appear on monthly statements as AWS Data Transfer Out for outbound data
• AWS pricing is designed to adapt to changing business needs, allowing orgs. to do innovate and not focus on infrastructure costs

EC2 Savings

• Reserved Instances (RIs) offer significant savings (75%) but you can only use it on predictable workloads
• there are three types of Reserved instances (RIs) All Upfront, Partial Upfront, No Upfront Payment
• Organizations can manage budgets predictable by utilization to reserved capacity
• Lower tiered pricing for things like Amazon S3 makes services allow users to pay less per GB as usage increases
• AWS offers a free tier for New Customers for Free use of services for UP to one year, like Amazon EC2 & Amazon S3
• Services like Amazon VPC & AWS IAM are FREE - lets users manage resources and secure access without adding costs
• With Consolidated Billing -multiple accounts can be combine to create a single bill
• This simplifies payment and potential cost reduction through discounts
• AWS provides management tools ( Elastic Beanstalk + CloudFormation) to streamline app deployment and resource management

Economies of Scale

• AWS always lowers data center hardware costs + increases operational efficiency... so that customers can pay less
• From 2006, AWS has reduced pricing 75 times... showing its commitment to customer savings

AWS Grows

• customers benefit from higher performing resources at ZERO extra charge... which increases value

AWS Structure

• Tiered pricing structure increases usage & scales operations while managing costs
• Custom Pricing for for high-volume requests to fit specific needs that give flexibility for business models
• Customers can agree on a price that better suits their usage patterns
• AWS's service portfolio helps find the best pricing for its customers and their operations

AWS Principle Summary

• All data is FREE flowing through Outbound Data Transfer with data transfer inside the region
• Customers ONLY pay when they are using a service and dont need long term contracts
• Service usage may occur charges but some are free. AWS pricing philosophy focuses on expanding customer service which decreases customer costs

Key characteristics

• Pricing of all the services will always depend on project
• Charge customers Only if they have consumed it, promotes cost efficiency
• Multiple Services Such as Amazon VPC, Beanstalk & AWS CloudFormation are FREE but resources could potentially have extra charges Inbound Data Transfers Typically Free - Outbound Tiers of data will need planning to have no unexpected charges
• Amazon VPC Creates isolated network within the service on AWS cloud
• Elastic Beanstalk Simplies deployment and helps you manage it effectively
• CloudFormation Automates Provisions using templates
• IAM - manages user access + Permission Securely Scaling Service which adjust res dynamically based off demand
• Opsworks this is A configuration Service for Applications

Cost Estimation

• Analyze services + Usage and map Pricing of AWS
• Pricing Calculator helps estimate costs
• Model Solutions + Understand cost
• on-prem involves Huge expenses for expenses HW. SW. licenses + staff
• You MUST MANAGE multiple components which Complex

AWS infrastructure benefits

• With cloud you DONT need an Front cost! ALLOWING PAY AS YOU - GO
• Scaling is easy PROVIDING FLEXIBLE

TCO analysis

• Its a finance help to see the cost of on prem vs cloud
• It ALWAYS INCLUDE services with Software and it labor

Cost Comparison

• A cost compares 3 year solutions of On prem vs cloud ,which usually show AWS savings Hardware/Software storage + IT