Cloud Computing & Emerging Technologies Paradigm (PDF)

Session Topic Readings & Cases No. 7-8 Cloud Computing and Emerging Reference: Chapter – 5 Technologies Paradigm [Introduction to Emerging & Latest Caselet: Project JEDI: Technologies] A Cloud of Co...

Session Topic Readings & Cases No. 7-8 Cloud Computing and Emerging Reference: Chapter – 5 Technologies Paradigm [Introduction to Emerging & Latest Caselet: Project JEDI: Technologies] A Cloud of Controversy Page 1 of 37 What is Cloud Computing? Cloud computing is the on-demand availability of computer system resources, especially data storage (cloud storage) and computing power, without direct active management by the user. Large clouds often have functions distributed over multiple locations, each of which is a data center. This provides access to a shared pool of computing resources (Computers, storage, applications, and services) over the network often the Internet. These “clouds” of computing resources can be accessed on an “as-needed” basis from any connected device and location. Page 2 of 37  Cloud computing relies on sharing of resources to achieve coherence and typically uses a “pay-as-you-go” model, which can help in reducing capital expenses but may also lead to unexpected operating expenses for users. Cloud computing bas become the fastest-growing form of computing, with worldwide public cloud spending to reach $350 billion by 2022 (Gartner 2019). Thousands or even hundreds of thousands of servers are located in cloud data centers, where they can be accessed by desktop computers, laptop computers, tablets, entertainment centers, smartphones, and other client machines linked to the Internet. Page 3 of 37  Amazon, Google, IBM, Oracle, and Microsoft operate huge, scalable cloud computing centers that provide computing power, data storage, application development tools, and high-speed Internet connections to firms that want to maintain their IT infrastructures remotely. Firms such as Google, Microsoft, SAP, Oracle, and Salesforce.com sell software applications as services delivered over the Internet. Page 4 of 37 Could Computing Platform Page 5 of 37 Five essential characteristics of Cloud Computing: On-demand self-service: A consumer can unilaterally provision computing capabilities, such as server time and network storage, as needed automatically without requiring human interaction with each service provider. Broad network access: Capabilities are available over the network and accessed through standard mechanisms that promote use by heterogeneous thin or thick client platforms (e.g., mobile phones, tablets, laptops, and workstations). {The biggest and most obvious difference is that: thin clients rely on a network connection for computing and don't do much processing on the hardware itself. Thick clients don't need the constant network connection and can do much of the processing for client/server applications.} Page 6 of 37  Resource pooling: The provider's computing resources are pooled to serve multiple consumers using a multi-tenant model, with different physical and virtual resources dynamically assigned and reassigned according to consumer demand. Rapid elasticity: Capabilities can be elastically provisioned and released, in some cases automatically, to scale rapidly outward and inward commensurate with demand. To the consumer, the capabilities available for provisioning often appear unlimited and can be appropriated in any quantity at any time. Page 7 of 37  Measured service: Cloud systems automatically control and optimize resource use by leveraging a metering capability at some level of abstraction appropriate to the type of service (e.g., storage, processing, bandwidth, and active user accounts). Cloud computing service models arranged as layers in a stack: Infrastructure as a service (IaaS) Platform as a service (PaaS) Software as a service (SaaS) Mobile "backend" as a service (MBaaS) Server-less computing or Function-as-a-Service (FaaS) Page 8 of 37 Page 9 of 37 Amazon Web Services: AWS is a collection of web services provided by Amazon to its cloud platform users. Page 10 of 37 Several advantages for using cloud applications: Reduces the need for customers to purchase computers to run applications, along with the tele- communications and staff required. Reduces software maintenance, upgrades and support Provides inexpensive scalability as businesses grow (or shrink) Enables “on demand computing” where customers are charged only for the capacity they use. Reduces the initial cost of purchasing software applications Page 11 of 37 The major disadvantages of cloud applications: Reduced control by the firm over the functionality of the software Introduces dependency on an external firm Poses security risks for truly proprietary corporate information Introduces a new recurring expense beyond the control of the customer Exposes the firm to future switching costs if the relationship does not work out Page 12 of 37 Assignments for the students: 1. What business benefits do cloud computing services provide? What problems do they solve? 2. What are the disadvantages of cloud computing? 3. What kinds of businesses are most likely to benefit from using cloud computing? Why? Page 13 of 37 What Are the Current Trends in Computer Hardware Platforms? The mobile digital platform o Smartphones o Tablet computers o Digital e-book readers and apps (Kindle) o Wearable devices Consumerization of IT and BYOD (bring your own device) o Forces businesses and I T departments to rethink how IT equipment and services are acquired and managed Page 14 of 37  Quantum computing o Uses quantum physics to represent and operate on data o Dramatic increases in computing speed Virtualization o Allows single physical resource to act as multiple resources (i.e., run multiple instances of O S); also enables multiple physical resources (such as storage devices) to appear as a single logical resource (such as in software-defined storage (SDS)) o Reduces hardware and power expenditures o Facilitates hardware centralization Page 15 of 37  Cloud computing o On-demand computing services obtained over network ▪ Infrastructure as a service (IaaS) ▪ Software as a service (SaaS) ▪ Platform as a service (PaaS) o Cloud can be public or private o Allows companies to minimize IT investments o Drawbacks: Concerns of security, reliability o Hybrid cloud computing model Page 16 of 37  Edge computing o Servers at the edge of the network, near the source of the data o Reduces latency and network traffic Green computing (Green IT ) o Practices and technologies for manufacturing, using, disposing of computing and networking hardware o Reducing power consumption a high priority o Green data centers High-performance, power-saving processors o Multicore processors o Power-efficient microprocessors Page 17 of 37 What Are the Current Trends in Computer Software Platforms and Trends? Linux and open-source software o Produced by community of programmers o Examples: Apache web server, Mozilla Firefox browser, OpenOffice o Linux Software for the web: Java, H T M L, and H T M L 5 o Java Virtual Machine o Web browsers o H T M L and H T M L 5 o Ruby on Rails and Python Page 18 of 37  Web services and service-oriented architecture o Web services o XML : Extensible Markup Language o SOA : service-oriented architecture ▪ Set of self-contained services that communicate with one another to create a working software application ▪ Software developers reuse these services in other combinations to assemble other applications as needed Page 19 of 37  Software outsourcing and cloud services o Software packages and enterprise software o Software outsourcing o Cloud-based software services and tools ▪ Service Level Agreements (S L A s): formal agreement with service providers Mashups and apps Page 20 of 37 Service Level Agreements Service level agreements (SLAs) are contracts between firms that formally define the level of service between a purchaser of services and a vendor of services. Contracts are a promise between individuals and firms to perform a service. SLAs have become very important in the information technology and systems areas of business firms. They are also used today within firms to manage the relationship between major departments and their internal customers. Service level agreements provide the seller of services with clear, measurable, objectives and benchmarks which, if attained, trigger payments to the provider. SLAs also contain provisions for cost recovery and penalties for non-performance or failure to meet the benchmarks. Typical SLAs will also have provisions for termination of the contract. Page 21 of 37 Information Systems Service Level Agreements Firms use SLAs in the systems area for several reasons: ◆ Identify and define the customer’s needs ◆ Provide a framework for mutual understanding ◆ Provide a framework for charging and pricing services ◆ Simplify complex issues ◆ Reduce areas of conflict ◆ Encourage dialog in the event of disputes ◆ Eliminate unrealistic expectations ◆ Provide a framework for competitive bidding of services Page 22 of 37 Competitive Forces Model for IT Infrastructure o Market demand for firm’s services o Firm’s business strategy o Firm’s IT strategy, infrastructure, and cost o Information technology assessment o Competitor firm services o Competitor firm IT infrastructure investments Page 23 of 37 Page 24 of 37 Top Cloud Computing Vendors Some of the large vendors providing cloud computing services today: Cloud Key Offerings Computing Vendor Compute, storage, database, analytics, Amazon networking, machine learning, and AI, mobile, Web developer tools, IoT, security, enterprise Services applications, blockchain. AWS is the most (AWS) popular cloud service provider in the world. Compute, storage, mobile, data management, messaging, media services, CDN, machine Microsoft learning and AI, developer tools, security, Azure blockchain, IoT. Known for its PaaS software development platform and its exclusive offering Page 25 of 37  of Microsoft’s previous products and services in the cloud. Similar to AWS and Azure, Google Cloud also offers similar services in various categories, Google Cloud including compute, storage, identity, security, database, AI and machine learning, virtualization, DevOps and more. Compute, Network, Storage, Cloud Packs, Management, Security, Database, Analytics, AI, IoT, Mobile, Dev Tools, Blockchain, Integration, IBM Cloud Migration, Private Cloud, and VMware. The IBM Cloud includes IaaS, SaaS, and PaaS services via public, private, and hybrid cloud models. Oracle cloud offers IaaS, PaaS, SaaS, and Data as a Service (DaaS). Oracle IaaS offerings are Oracle Compute, Storage, Networking, Governance, Database, Load Balancing, DNS Monitoring, Page 26 of 37  Ravello, and FastConnect. Oracle PaaS offerings are Data Management, Application Development, Integration, Business Analytics, Security, Management, and Content and Enterprise. Oracle SaaS offerings include HCM, ERP, SCM, EPM, IoT, Analytics, Data, and Blockchain Applications. Initially built to serve Alibaba’s own e-commerce ecosystem and is now offered to the public. Alibaba Cloud is the largest cloud provider in China, with produces and services including Alibaba Elastic Computing, Storage and CDN, Cloud Networking, Database Services, Security, Monitoring and Management, Domains and Websites, Analytics and Data Technology, Application Services, Media Services, Middleware, Cloud Communication, and IoT. Page 27 of 37 Caselet: Introduction: The Joint Enterprise Defense Infrastructure (JEDI) contract was a large United States Department of Defense cloud computing contract which has been reported as being worth $10 billion over ten years. JEDI was meant to be a commercial off-the-shelf (COTS) implementation of existing technology, while providing economies of scale to DoD. Project JEDI: Clould of Controversy Most major companies have moved some of their computing operations to the cloud, and now the U.S. military wants to follow suit. Unifying information in the cloud is more necessary than ever as the armed services deploy large numbers of remote sensors, semiautonomous weapons, and artificial intelligence applications. All of these capabilities require immediate and instantaneous access to very large quantities of data gathered from many different locations. This is even more crucial now that the United States Cyber Command has been elevated to the equivalent of Central Command, Page 28 of 37 which runs operations in the Middle East, or the Northern Command, which defends the continental United States. Project JEDI is the U.S. Department of Defense's plan to modernize its IT infrastructure so that employees, officers, and soldiers on the front line can access and manipulate data at the speed of modern enterprises. Project JEDI aims to create unified cloud infrastructure across the entire Department of Defense (DOD) that will speed the flow of data and analysis to combat troops. The new plan is part of a larger move toward replacing the military's branch-specific systems and networks with a more efficient and manageable enterprise model. On July 26, 2018 the DOD issued a Request for Proposal (RFP) for a Joint Enterprise Defense Infrastructure (JEDI) Cloud Program, which calls for a cloud services solution that can support Unclassified, Secret, and Top Secret requirements with a focus on using commercially available services. The JEDI program calls for a ten- year $10 billion government contract to go to a single cloud computing vendor, which will serve as the exclusive cloud Page 29 of 37 computing provider for the U.S. Department of Defense. The U.S. Department of Defense maintains more than 500 public and private cloud infrastructures that support Unclassified and Secret requirements. The DOD's current cloud services are decentralized, creating an additional level of complexity for managing data and services at an enterprise-wide level. Current DOD systems are fragmented, slowing the decision-making process within the DOD both at home and abroad. Much of the U.S. military operates on outdated computer systems built during the 1980s and 1990s. The Defense Department has spent billions of dollars trying to make these systems talk to one another. What the DOD wants and needs is an enterprise-wide cloud that supports rapid data driven decision making and provides worldwide support for DOD operations. The JEDI contract is central to the Pentagon's efforts to modernize its technology. The 10-year JEDI contract set off a showdown among Amazon, Microsoft, Oracle, IBM, and Google for the work to transform the military's cloud computing systems. (Google dropped out in October 2018 without submitting a formal bid, claiming the military work Page 30 of 37 conflicted with corporate principles prohibiting the use of artificial intelligence in weaponry.) Oracle, IBM, and Microsoft stated that the DoD shouldn't use a single cloud vendor for JEDI. Some experts have backed them up. Justin Cappos, associate professor of computer science and engineering at New York University, said a single cloud solution is out of the norm. Many companies use multiple cloud vendors because it's safer. Leigh Madden, Microsoft's general manager for national security, stated that his company wants to win the contract, but 80 percent of businesses use multiple cloud vendors. Other experts have pointed out that deployment of a single cloud conflicts with established best practices and industry trends in the commercial marketplace. They believe that such a large contract should not be awarded to a single company. Those favoring a single JEDI vendor note that using one provider would reduce complexity in military IT systems and streamline communications. Page 31 of 37 Oracle America and IBM both filed pre-award bid protests against the JEDI Cloud solicitation, claiming it favored Amazon and Microsoft. These were dismissed by the General Accounting Office (GAO) in late 2018. In the end, Amazon and Microsoft, which have numerous data centers around the globe, became the two finalists, and Microsoft was awarded the contract in October 2019. The Pentagon's Cloud Executive Steering Group described the acquisition process for the massive cloud migration that will stretch across the entire DOD IT infrastructure, focusing primarily on infrastructure-as-a-service (IaaS) and platform-as-a-service (PaaS). Instead of building and maintaining its own data centers and systems, the DOD wants to take advantage of the existing strengths of commercially available cloud technologies and not limit them with extensive customizations. The DOD wants to remain in pace with industry and be able to take advantage of new commercial software solutions. The Pentagon's acquisition regulations have in the past served as barriers to innovation. Internal acquisition policies need to be revised to take full advantage of the commercial cloud platform. Page 32 of 37 The envisioned IaaS must be more than a data center. Other requirements include vendor monitoring, identity, failover, scalability, even artificial intelligence (AI). The DOD wants to be able to immediately take advantage of commercial innovations in these areas. If the DOD uses commercially available cloud solutions, it will have the foundational technology in place to deliver better software to fighters, with better security, lower cost, and easier maintainability. On February 13, 2020 a federal judge ordered the Pentagon to halt work on the JEDI contract, which had been awarded to Microsoft. Amazon had been long considered the favorite to win the JEDI contract, because of its dominance of cloud computing (it has 45 percent of the market) and its experience building cloud services for the Central Intelligence Agency. However, its bid was overshadowed by conflict-of-interest allegations. Amazon had filed suit in December 2019 to block the contract award to Microsoft, contending that the selection of Microsoft had been improperly influenced by President Trump's public complaints about Amazon. Amazon's CEO, Page 33 of 37 Jeff Bezos, owns The Washington Post, which is a frequent critic of Trump and his policies. Oracle, a leading government contractor noted for the software to handle large databases, lobbied heavily in Congress to find opponents of Amazon with influence in the Pentagon and the White House. Oracle went to court to challenge what it felt were Amazon's conflicts of interest, but it did not prevail. Industry experts point out that Oracle is playing catch-up in cloud computing and holds many federal contracts that could be displaced by a shift to the cloud. Obstructing the implementation of JEDI could help Oracle preserve its current business longer. Although Oracle probably did not have a chance of winning the JEDI contract, it might have been able to get part of the business if the JEDI contract had been broken into smaller parts. Microsoft, with 25 percent of the cloud computing market, had only recently opened enough classified server facilities capable of handling data on a scale required by the JEDI contract. Experts Page 34 of 37 initially thought Microsoft would only get a part of the JEDI business and that the Pentagon would use multiple vendors of cloud services, as do many private companies. Microsoft had been considered the favorite for other government cloud programs, including an intelligence contract. Despite the controversy, the JEDI project will have a huge ripple effect as a cloud innovation driver within the US government and across the private sector. Today, cloud computing has matured into the cornerstone of digital transformation across public and private sectors and as an engine for emerging technologies such as artificial intelligence, big data, and the Internet of Things (IoT). In 2010, then-U.S. CIO Vivek Kundra announced a Cloud First policy for federal agencies. Since then, federal cloud spending has increased 500 percent. However, a 2019 survey by the Center for Digital Government found that cloud migration for government agencies continues to face obstacles, including data mobility, security, compliance, and ensuring the right training and skills. Page 35 of 37 Project JEDI is expected to have an enormous impact on all of these fronts. Although all federal agencies must be sure not to compromise security as they shift to the cloud, the bar is even higher for the Pentagon, for the obvious reason that national security is at stake. JEDI should be a catalyst for the development of cutting-edge security advances and best practices whose benefits will eventually spill over to all cloud users across the government and in the private sector. A better enterprise cloud will also support the Pentagon's plans to expand the use of AI systems throughout the military. Huge government projects may have positive consequences beyond their original scope. Sources: Sydney J. Freedberg Jr."Experts Debate: Should JEDI Cloud Be Saved?" Breaking Defense, May 4, 2020; Joao-Pierre S. Ruth, "Amazon Gets Temporary Injunction to Halt $10B JEDI Project," Information Week, February 14, 2020; Stephan Fabel, "What Everyone Is Missing about the Controversial JEDI Project: Positive Ripple Effects," Venture Beat, December 14, 2019; Daniel Howley, Page 36 of 37 "What Is Project JEDI? The $10 Billion Pentagon Project Trump Is Holding Up," Yahoo Finance, August 2, 2019; Kate Conger, David E. Sanger, and Scott Shane, "Microsoft Wins Pentagon's $10 Billion JEDI Contract, Thwarting Amazon," New York Times, October 25, 2019; and Heidi M. Peters, "The DOD's JEDI Cloud Program," CRS Insight December 12, 2018. Case Study Questions: Q.1. Describe the JEDI Project. Why is it so important? What problems was it meant to solve? Q.2. What management, organization, and technology issues are raised by this project? Explain for each. Q.3. Should the JEDI contract be awarded to a single vendor? Why or why not? Page 37 of 37