Cloud Computing Lect 1

Cloud Computing and IoT
Technology reshapes business
Business Visibility Alignment Efficiency Agility Responsiveness

impact
Some Many Most Everyone, Things: sensors
Reach specialists managers people everywhere and actuators
Application Standalone Suites + Web sites Mobile Distributed

topology applications integration and portals apps systems
Wireless Mesh
Access to Walk to the WAN
networks
computing datacenter LAN
1975 1985 1995 2005 2015
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rights reserved. c
The Cloud – We all use it
Have you used 'the cloud' before?
The Cloud in Your Pocket
 Google Now is an
example of the Cloud
and Big Data, all in one
 Hosted on Google's
platform in their data
center
 Records your activities,
runs large-scale
analysis to make
predictions!
What is so special about that?
 The key challenge is scale!
 Lots of data, lots of users everywhere on the planet
 Hosted on massive shared infrastructure (data centers –
think computers the size of a football field!)
 Scale brings new challenges

 Many algorithms do not work at these scales
 Need special solutions for reliability, performance, ...
 "Big Data": Data analysis at scale
 But scale also brings new opportunities

 Large data sets can enable new insights, new applications
Data-centric computing
 Trend towards data-centric computing
 Two words: "Big data"
 Today’s currency on the Internet is data!

 You “pay” for using Google, Facebook, etc. by
letting them record your every action, link,
search, etc.
 But data’s value is not just economic:

 It allows us to better answer questions, understand what’s
important, validate hypotheses about social interactions, …
 Example: Online Social Network research
How much data?
 Modern applications use massive data:
 Rendering 'Avatar' movie required >1 petabyte
of storage
 eBay has >6.5 petabytes of user data
 CERN's LHC will produce about 15 petabytes of
25,400 km
data per year
 In 2008, Google processed 20 petabytes per day
 German Climate computing center dimensioned
for 60 petabytes of climate data
 Google now designing for 1 exabyte of storage
 NSA Utah Data Center is said to have 5 zettabyte (!)
 How much is a zettabyte?
 1,000,000,000,000,000,000,000 bytes
 A stack of 1TB hard disks that is 25,400 km high
How much computation?
 No single computer can
process that much data
 Need many computers!
 How many computers do
modern services need?
 Facebook is thought to have more than 60,000 servers
 1&1 Internet has over 70,000 servers
 Akamai has 95,000 servers in 71 countries
 Intel has ~100,000 servers in 97 data centers
 Microsoft reportedly had at least 200,000 servers in 2008
 Google is thought to have more than 1 million servers,
is planning for 10 million (according to Jeff Dean)
Scaling up
PC Server Cluster
 What if one computer is not enough?

 Buy a bigger (server-class) computer
 What if the biggest computer is not enough?

 Buy many computers
Clusters
Network switch
(connects nodes with
each other and
with other racks)
Rack Many nodes/blades

(often identical)
Storage device(s)
 Characteristics of a cluster:
 Many similar machines, close interconnection (same room?)
 Often special, standardized hardware (racks, blades)
 Usually owned and used by a single organization
Power and cooling
 Clusters need lots of power
 Example: 140 Watts per server
 Rack with 32 servers: 4.5kW (needs special power supply!)
 Most of this power is converted into heat
 Large clusters need massive cooling

 4.5kW is about 3 space heaters
 And that's just one rack!
Scaling up
PC Server Cluster Data center
 What if your cluster is too big (hot, power

hungry) to fit into your office building?
 Build a separate building for the cluster
 Building can have lots of cooling and power
 Result: Data center
What does a data center look like?
Cooling
plant
Data centers
(size of a
football field)
Google data center in The Dalles, Oregon
 A warehouse-sized computer
 A single data center can easily contain 10,000 racks with
100 cores in each rack (1,000,000 cores total)
 Modern applications require huge amounts of
processing and data
 Measured in petabytes, millions of users, billions of objects
 Need special hardware, algorithms, tools to work at this scale
 Clusters and data centers can provide the

resources we need
 Main difference: Scale (room-sized vs. building-sized)
 Special hardware; power and cooling are big concerns
 Clusters and data centers are not perfect

 Difficult to dimension; expensive; difficult to scale
What is Cloud Computing?
Cloud Computing
Computing and software resources that

are delivered on demand, as service..
What is Cloud Computing or
Service?
 Ability to provide Internet-based shared
resources, software and information to
computers, thin clients (smart phones, iPads)
and other devices on demand.
 Users or clients can perform a task, such as

word processing, with a client such as a
browser and with service provided through
such cloud based computational resources. Cloud Drivers:
• IT complexity and costs
• Mobility
• Scale
• Thin client applications
• Ubiquitous broadband
connectivity
Understanding Cloud Computing: A little
bit of history…
Utility
 computing: John McCarthy , 1961
 “If computers of the kind I have advocated become the
computers of the future, then computing may someday be
organized as a public utility just as the telephone system is a
public utility. ... The computer utility could become the basis of
a new and important industry.”
1990s,
 Salesforce.com pioneered the notion of
bringing remotely provisioned services into the
enterprise.
2002,
 Amazon launched Amazon Web Services (AWS)
 A suite of enterprise-oriented services that provide
remotely provisioned storage, computing resources, and
business functionality.
2006,
 Amazon Elastic Compute Cloud (EC2)
Drivers for cloud computing
 Capacity
 Planning
 the process of determining and fulfilling future demands of
an organization’s IT resources, products, and services
 Lead Strategy: adding capacity to an IT resource in anticipation of demand
 Lag Strategy: adding capacity when the IT resource reaches its full capacity
 Match Strategy: adding IT resource capacity in small increments, as demand
increases
 Cost
 Reduction
 A direct alignment between IT costs and business performance can
be difficult to maintain
 cost of acquiring new infrastructure
 cost of its ongoing ownership
 Agility

 Businesses need to adapt and evolve to successfully face change

 respond to business change by scaling its IT resources
Major Technology Innovations that made
the cloud possible
Clustering

concept of
built-in
redundancy and
failover
Grid
 Computing
more
distributed,
large-scale,
ubiquitous, …
cloudcomputing is
20
a descendant
Major Technology Innovations that made
the cloud possible
Virtualization

 allowsphysical IT resources to provide multiple
virtual images of themselves so that their underlying
processing capabilities can be shared by multiple
users.
Enabling technologies
Broadband
 Networks and
Internet Architecture
Data Center Technology

Web Technology

Multitenant Technology

Service Technology

Cloud Delivery Rises to the Challenge
• Business feels • Business and IT craft

constrained by IT, not value together, shared
enabled focus and goals and new
• TCO and ROI metrics business models
always in doubt, Value • Shift from Cost Center to
questioned by business business transformation
focus for IT
Traditional IT Cloud-focused
Delivery IT Delivery
What is different about cloud computing?
Without cloud computing With cloud computing
 Virtualized resources  Location

 Automated service independent
management  Rapid scalability
 Standardized services  Self-service
 Software
 Software  Hardware
 Hardware  Storage
 Storage  Networking  Software  Storage
 Networking  Hardware  Networking
Note: Elements of cloud computing taken from NIST, Gartner, Forrester and IDC cloud computing definitions
Differences: Cloud Computing & Traditional IT
25
Benefits of Cloud Computing
Capability From To
Server / Storage 10-20% Cloud accelerates business
Utilization value across a wide variety 70-90%
of domains.
Self service None Unlimited
Test Provisioning Weeks Minutes

Cost
Flexibility
Change Months
Management Days/Hours
Release Weeks
Management STANDARDIZATION
Minutes
Metering/Billing Fixed cost

model VIRTUALIZATION Granular
Standardization Complex AUTOMATION Self-Service

Payback period Years
for new services Legacy Cloud enabled Months
environments enterprise
Cloud Computing
Today(ITA,2016)
Cloud Computing Success Stories
•GE
▫Global procurement hosting 500k suppliers and 100k users in six
languages on SaaS platform to manage $55B/yr in spend
•Washington DC
▫Google Apps used by 38k employees reducing costs to 50/user per year
for email, calendaring, documents, spreadsheets, wikis, and instant
messaging
•Eli Lilly
▫Using Amazon Web Services can deploy a new server in 3min vs 50days
and a 64-node Linux cluster in 5min vs 100days
•NASDAQ
▫Using Amazon Storage to store 30-80GB/day of trading activity
Cloud Computing Success Stories
CC Fast Growth & Wide
Adoption
Some Forecasts
Cloud business growth will reach 244 billion USD will be the global
17% from 2013 to 2018 [Gartner] cloud revenue in 2017 [Gartner]
11% of IT budget in 2016 will shift Around 28% of the worldwide

from traditional IT in-house to enterprise applications market will be
SaaS-based, generating
Cloud [IDC, 2015]
approximately 51 Billion USD in
revenue by 2018 [IDC]
Drivers of Cloud Adoption: Data,
Data, and More Data
• Big Data
– 30% growth in spending on technology and services in 2014 (IDC)
– “Data-optimized cloud platforms” are on the rise
• Social Networks
– Commoditization (standard offerings from CSPs)
– 60% of Fortune 500 considering deployment of social-enabled solutions by 2016 (IDC)
• Mobile Apps
– Driving PaaS adoption
– By 2017 ~ 50% of mobile app development will use cloud (Gartner)
• Data Centers
– Continued growth in cloud-dedicated data centers
– Software defined everything
2015 © ADTRAN, Inc.

Examples of cloud applications
• Application hosting
• Backup and Storage
• Content delivery
• E-commerce
• High-performance computing
• Media hosting
• On-demand workforce
• Search engines
• Web hosting
Internet of Things: The Next
Frontier

Introduction to the Internet of Things
Internet of People
3
© 2016 SAP SE or an P
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Internet of Things
© 2016 SAP SE or an P
u
3
5
openSAP definition
“The Internet of Things (IoT) is the

network of physical objects that contain embedded technology to sense and
interact with their environment and each other to collect and exchange data to
make our lives better.”
Sense Analyze
Connect Store Share
Act Control
IoT Definition by Gartner, Wikipedia, Digital Trends, and
openSAP
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Industrial revolutions – from industry 1.0 to 4.0
First Second Third Fourth

Mechanical Mass Digital Internet of
Power Production Revolution Things
Mechanical Division of labor and All devices

production facilities mass production with are
with the the help of electrical connected
help of water energy
and steam
power
Electronic and IT
systems that
further automate
production
1800 1900 2000
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reserved.
IoT Facts
6 things you should know about
IoT
© 2017 SAP SE or an SAP affiliate company. All rights Public 38

reserved.
IoT facts
The term “Internet of Things” ATMs are

87% considered some
was coined by KevinAshton from of people have of the first IoT
not heard of objects, and
went online as far
MIT in 1999 the term
Internet of back
Things. as 1974.
# of For a device to be labelled as

Connected IoT, it
Objects Only 10% of cars
must have 7 design
were connected to
6.4 the Internet in 2012. features:
2016 • Sensors
billion By 2020, it’s
2020 • Internet
50 estimated that 90%
connectivity
billion will • Processors
be. • Energy efficiency
• Cost
effectiveness
• Quality
• Reliability
• Security

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IoT in 2016
Why is the IoT boom happening
now?

reserved. c 0
Why IoT is booming now (1)
Availability Affordability Scalability
• IoT devices are already • Average cost of • Many devices offer simple
common, cheap, and easy sensors used in IoT “plug & play” functionality.
to replace. will drop even more.
• IoT devices are highly

• Basic infrastructure to support • By end of the decade, flexible, offering short-
IoT is in place (Wi-Fi, LTE). the price for a sensor or long-term solutions
will be down to almost for companies,
$0.30. households,
• By 2018, countries.
half of the
world
will be
connected to
the Internet.

reserved. c 1
Technology convergence
Artificial Natural language Virtual and

Intelligence generation Augmented Reality
Robotics and Internet

Drones of
Things and many
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more… Publi 4
reserved. c 2
The IoT world
today
What is possible today?

reserved. c 3
Oil and gas industry
Track
pressure, temperature, Data-enabled
transfer
speeds in real time monitoring
improves employee
safety
Advanced
sensors Optimize
routes to increase
attach to pipelines
shipment efficiency
Forecast
future volumes

reserved. c 4
Disaster relief
Remote
control Electronic
functions displays
raise awareness
that alert vending
for public
machines to
announcements
dispense drinks
during disasters
Storage
batteries
allow machines to
Current operate during
power outages
location
stickers are on
all vending
machines
in Japan to track
location immediately

reserved. c 5
Smart pill bottles
Internet Reminder
Cap
connected transmits if medicine
wasn’t taken
hub that plugs data to
into the wall hub
E-mails
to a loved one or a
health provider
Refill button
that connects them
to their pharmacy
via phone
Cost
$10–$15 per
month

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The Internet of Things
The ‘Internet of Things’ will IDC estimates there will be

generate $14,400,000,000 of approximately 212 billion
value over the next decade1. things globally by the end
of 2020.
Extreme Networks estimates
There will be 40 times that 5 billion people will
more devices than have Internet access.
people on the Internet
in 20202.
KEVIN ASHTON – “FATHER OF THE IOT”
He believed IoT could “turn the world into
data” that could be used to make macro
decisions on resource utilization.
“Information is a great way to reduce waste

and increase efficiency, and that’s really
Kevin Ashton coined “Internet of Things”
what the Internet of Things provides”.
during his job at MIT Auto-ID Center
[Source: The Reimagination Thought Leaders Summit ,Sydney, 17 November 2015]
TECHNOLOGIES THAT ENABLE IOT
IPv6 Cheap sensors

(50% cheaper)
Big data Cheap bandwidth

(unstructured
data)
For the Past 10 Years (40x cheaper)
Ubiquitous Cheap
wireless Smartphones
processing &
smarter
coverage (personal gateway)
(60x cheaper)
(free wifi)
Birth of IoT?
50
CLOUD COMPUTING DEFINITION
Fast Forward Your Development

What is Cloud Computing?
“Cloud computing is a style of computing where

massively scalable IT-related capabilities are
provided as a service across the Internet to
multiple external customers”
“Cloud computing: A pool of abstracted, highly

scalable, and managed infrastructure capable of
hosting end-customer applications and billed by
consumption”
“Cloud computing is Web-based processing,

whereby shared resources, software, and
information are provided to computers and other
devices (such as smartphones) on demand over
the Internet.”
National
 Institute of Standards and Technology
(NIST) “Cloud computing is a model for enabling
ubiquitous, convenient, on-demand network access to
a shared pool of configurable computing resources
(e.g., networks, servers, storage, applications, and
services) that can be rapidly provisioned and released
with minimal management effort or service provider
interaction. This cloud model is composed of five
essential characteristics, three service models, and
four deployment models.
Myth & Facts
• Myths
▫ Cloud computing will eliminate the need for IT
personnel.
▫ Cloud computing will eliminate IT expense
• Facts
▫ Cloud technology is real
▫ This technology should not be ignored
▫

Cloud
 distinctIT environment that is designed for
the purpose of remotely provisioning
scalable and measured IT resources
 As a specific environment used to remotely
provision IT resources, a cloud has a finite
boundary
IT
 Resource
a physical or virtual IT-related artifact that can
be either software-based, or hardware-based
Cloud
 Consumer
the party that uses cloud-based IT
resources
Cloud
 Provider
the party that provides the IT resources
Scaling

the ability of the IT resource to handle
increased or decreased usage demands
Cloud Services Features
• Consumed over Internet/Cloud
• Anywhere - location Independent (?)
• Any Device - device Independent (?)
• provided by 3rd party (?)
• Shared infrastructure (multi-tenancy)
• Little or no capital expenditure as
infrastructure is owned by the provider.
• Massive scalability is also common, though
this is not an absolute requirement and many of
the offerings have yet to achieve large scale.

Essential characteristics of Cloud Computing
On-demand
self-service
Flexible
Ubiquitous
pricing -
network
Pay per access
use
Cloud
Computing
Rapid Resource
elasticity pooling
Essential Characteristics
• 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).
Source: NIST Special Publication 800-145

Characteristics
• Resource pooling
The provider’s computing resources are pooled to serve multiple
consumers
Resources can be dynamically assigned and reassigned according
to customer demand
Customer generally may not care where the resources are
physically located but should be aware of risks if they are located
offshore

Characteristics
• Rapid elasticity
Capabilities can be expanded or released automatically (i.e.,
more cpu power, or ability to handle additional users)
To the customer this appears seamless, limitless, and responsive

to their changing requirements
• Measured service
Customers are charged for the services they use and the amounts
There is a metering concept where customer resource usage can be
monitored, controlled, and reported, providing transparency for both the
provider and consumer of the utilized service
What Cloud Computing “IS NOT”?
• It is not Network Computing
 Application and Data are not confined to any specific Company’s Server
 No VPN Access
 Encompasses multiple companies, multiple servers and multiple

networks
• It is not Traditional Outsourcing
 Not a contract to host data by 3rd party Hosting Business
 No subcontracting for computing services for specific outside firm

History and Origins
Launches of Google App

2008 - 2009 Engine/Windows Azure Beta
Google App / Azure
2006
S3 Launches/EC2
2002
Launch of Amazon web services
The first milestone for Cloud Computing

1990
The arrival of Salesforce.com
1960
Supercomputers/Mainframe
Cloud service models
CLOUD SERVICES DEFINITIONS
XAAS – X AS A SERVICE

XAAS/EAAS
• Everything as a service (EaaS, XaaS,*aaS) is
a concept of being able to call up re-usable, fine-
grained software components across a network.
It is a subset of cloud computing. The most
common and successful example is software as a
service (SaaS), but the as a service moniker has
been associated with many other functions
including communication, infrastructure and
platforms, most of which are core components of
cloud computing.

Cloud Service Layers
Cloud Service models - Containing
Software as a Email Business Processes
Service (SaaS) Industry Applications CRM/ERP/HR
Platform as a Middleware Web 2.0 Application Runtime
Service (PaaS) Development Tooling Database Java Runtime
Infrastructure as Servers Networking Storage Data Center Fabric

a Service (IaaS) Firewalls, load balancers
Cloud Service models - Examples
Software as a
Service (SaaS)
Platform as a
Service (PaaS)
Infrastructure as
a Service (IaaS)
Software as a Service (SaaS)
User
Application
Middleware
Hardware
Cloud
provider
Cloud provides an entire application

Word processor, spreadsheet, CRM software, calendar...
Customer pays cloud provider
Example: Google Apps, Salesforce.com
SaaS
A
 software program positioned as a
shared, reusable cloud service
V.Marangozova-Martin
SaaS
Relational Storage
Traditional
 relational storage in the cloud
With support for SQL
Strengths:

Familiar technologies
Many available tools, e.g., for reporting
Limited data lock-in

Can be cheaper than on-premises
relational storage
Weaknesses:

Scaling to handle very large data is
challenging
No SQL Storage (Scale-out)
Massively
 scalable storage in the
cloud
Strengths:
Scaling to handle very large data
is straightforward
Can be cheaper than relational storage
Weaknesses:

Unfamiliar technologies
Few available tools
Significant data lock-in
Storage Blobs
Storage
 for Binary Large OBjects in the
cloud
Such as video, back-ups, etc.
Strengths:

Globallyaccessible way to store and access
large data
Can be cheaper than on-premises storage
Weaknesses:

Provides only simple unstructured storage
SaaS Pro & Cons
Benefits • Challenges
• Speed • Extension of the security model
• Reduced up-front cost, potential to the provider (data privacy
for reduced lifetime cost and ownership)
• Transfer of some/all support • Governance and billing
obligations management
• Elimination of licensing risk • Synchronization of client and
• Elimination of version vendor migrations
compatibility • Integrated end-user support
• Reduced hardware footprint • Scalability
Strong governance required to prevent lines of business from purchasing

application services externally without IT involvement

Platform as a Service (PaaS)
SaaS
provider User
Application
Middleware
Hardware
Cloud
provider
Cloud provides
middleware/infrastructure
For example, Microsoft Common Language Runtime (CLR)
Customer pays SaaS provider for the service; SaaS provider pays the cloud for
the infrastructure
Example: Windows Azure, Google App Engine 80
PaaS
PaaS
 represents a pre-defined “ready-to-
use” environment typically comprised of
already deployed and configured IT
resources
predefined network, storage, computing services
predefined ways of using them
predefined development environments
PaaS
PaaS
PaaS
Developers
 provide an application, which
the platform runs
They don’t work directly with VMs
Strengths:

Provides higher-level services than IaaS
Requires essentially no administrative skills
Weaknesses:

Allowsless control of the environment
Can be harder to migrate existing software
PaaS Pro & Cons
Benefits • Challenges
• Pay-as-you-go for development, • Governance
test, and production • Tie-in to the vendor
environments • Extension of the security model
• Enables developers to focus on to the provider
application code • Connectivity
• Instant global platform • Reliance on 3rd party SLA’s
• Elimination of H/W
dependencies and capacity
concerns
• Inherent scalability
• Simplified deployment model
Strong governance required to prevent lines of business from building

applications without IT involvement

Infrastructure as a Service (IaaS)
SaaS
provider User
Application
Middleware
Hardware
Cloud
provider
Cloud provides raw computing resources

Virtual machine, blade server, hard disk, ...
Customer pays SaaS provider for the service; SaaS provider pays the cloud for
the resources
Examples: Amazon Web Services, Rackspace Cloud, GoGrid
IaaS
Include
 hardware, network,
connectivity, operating systems, and
other “raw” IT resources.
IaaS provides IT resources that are

virtualized and packaged into bundles
that simplify up-front runtime scaling and
customization of the infrastructure
IaaS
IaaS
IaaS
Developers
 create virtual machines (VMs)
on demand
They have full access to these VMs
Strengths:

Cancontrol and configure environment
Familiar technologies
Weaknesses:

Mustcontrol and configure environment
Requires administrative skills to use
IaaS Pro & Cons
Benefits
• Systems managed by SLA should equate • Challenges
to fewer breaches • Portability of applications
• Higher return on assets through higher
• Maturity of systems management
utilization
tools
• Reduced cost driven by
▫ Less hardware • Integration across Cloud boundary
▫ Less floor space from smaller • Extension of internal security
hardware footprint models
▫ Higher level of automation from
fewer administrators
▫ Lower power consumption
• Able to match consumption to demand
IaaS is the onramp for corporate IT to Cloud Computing!

Cloud Service models - Definitions
Software as a • SaaS is a software delivery methodology that provides

licensed multi-tenant access to software and its
Service (SaaS) functions remotely as a Web-based service.
Platform as a • PaaS provides all of the facilities required to support

the complete life cycle of building and delivering web
Service (PaaS) applications and services entirely from the Internet.
Infrastructure as • IaaS is the delivery of technology infrastructure as an

a Service (IaaS) on demand scalable service.
Cloud Service models - Characteristics
• Scalable; Multi-tenant; Metadata driven

Software as a configurability
Service (SaaS) • Sometimes free; easy to use; good consumer
adoption; proven business models
• Highly scalable; multi-tier architecture; Multi tenant

Platform as a environments
Service (PaaS) • Developers can upload a configured applications and it
“runs” within the platform’s framework
• Offers full control of a company’s infrastructure; not

Infrastructure as confined to applications or restrictive instances
a Service (IaaS) • Sometimes comes with a price premium; can be
complex to build, manage and maintain
Cloud Services Types
• Many service types try to “reuse” the success of
cloud computing.
• In this course we focus on the main three major
services:
▫ IAAS
▫ PAAS
▫ SAAS
• Other services:
▫ DAAS
▫ NAAS
▫ CAAS

NAAS
• Network as a Service
• Provide a global network capability, CDNs for
example
• Example, known video CDNs like:
▫ Akamai
▫ Limelight
▫ L3
▫ Amazon CloudFront (limited solution)

DAAS
• Data as a Service
• DaaS - A software as a service or web service
offering that provides customers with access and
analytics around a set of proprietary set of
aggregated data.
• Example - Salary.com collects user data by
offering individuals the ability to benchmark
their compensation levels against others. Sell
anonomized data to companies (HR managers)
for hiring and compensation related usage.
Others D&B.

CAAS (Not Leasing)
• Communications as a Service (CaaS) is a
type of outsourced enterprise communications
solution where a third party vendor (known as
CaaS vendor) is responsible for the management
of hardware and software required for delivering
Voice over IP (Voice as a Service), instant
messaging, and video conferencing applications
using fixed and mobile devices.
• Example: IP-Centrex, a remote PBX

Services Framework at the Data Center

Simple Service Map
IAAS Platform as a Service Cloud-based User

Utility Computing (PaaS) Applications

Service Maps

Pizza Service Models
Cloud Architectures
On premises Infrastructure Platform Software
(as a Service) (as a Service) (as a Service)
Virtual machine, servers, Execution runtime, CRM, Email, virtual
storage, load balancers, database, web server, desktop, communication,
network, … development tools, ... games, …
Application
Application Application Application Application
Manage
You
Data Data Data Data
You Manage
Data
Runtime
Runtime Runtime Runtime Runtime
Vendor Managed
Middleware
Middleware Middleware
You Manage
Middleware Middleware
Vendor Managed
O/S O/S O/S O/S O/S
Virtualization
Virtualization Virtualization Virtualization Virtualization
Vendor Managed
Server
Servers Server Server Server
Storage
Storage Storage Storage Storage
Networking
Networking Networking Networking Networking

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Cloud Computing and IoT

Technology reshapes business

Business Visibility Alignment Efficiency Agility Responsiveness

Application Standalone Suites + Web sites Mobile Distributed

1975 1985 1995 2005 2015

© 2016 SAP SE or an SAP affiliate company. All Publi 3

 Scale brings new challenges

 But scale also brings new opportunities

 Today’s currency on the Internet is data!

 But data’s value is not just economic:

 What if one computer is not enough?

 What if the biggest computer is not enough?

Rack Many nodes/blades

 Large clusters need massive cooling

PC Server Cluster Data center

 What if your cluster is too big (hot, power

Google data center in The Dalles, Oregon

 Clusters and data centers can provide the

 Clusters and data centers are not perfect

Computing and software resources that

 Users or clients can perform a task, such as

 Businesses need to adapt and evolve to successfully face change

• Business feels • Business and IT craft

Without cloud computing With cloud computing

 Virtualized resources  Location

Test Provisioning Weeks Minutes

Metering/Billing Fixed cost

Standardization Complex AUTOMATION Self-Service

11% of IT budget in 2016 will shift Around 28% of the worldwide

2015 © ADTRAN, Inc.

2015 © ADTRAN, Inc.

2015 © ADTRAN, Inc.

2015 © ADTRAN, Inc.

“The Internet of Things (IoT) is the

Connect Store Share

© 2017 SAP SE or an SAP affiliate company. All rights Publi 3

First Second Third Fourth

Mechanical Division of labor and All devices

1800 1900 2000

© 2017 SAP SE or an SAP affiliate company. All rights Public 37

© 2017 SAP SE or an SAP affiliate company. All rights Public 38

The term “Internet of Things” ATMs are

# of For a device to be labelled as

© 2017 SAP SE or an SAP affiliate company. All rights Publi 3

© 2017 SAP SE or an SAP affiliate company. All rights Publi 4

Availability Affordability Scalability

• IoT devices are highly

© 2017 SAP SE or an SAP affiliate company. All rights Publi 4

Artificial Natural language Virtual and

Robotics and Internet

© 2017 SAP SE or an SAP affiliate company. All rights Publi 4

© 2017 SAP SE or an SAP affiliate company. All rights Publi 4

© 2017 SAP SE or an SAP affiliate company. All rights Publi 4

© 2017 SAP SE or an SAP affiliate company. All rights Publi 4

The ‘Internet of Things’ will IDC estimates there will be

“Information is a great way to reduce waste

IPv6 Cheap sensors

Big data Cheap bandwidth

Fast Forward Your Development

“Cloud computing is a style of computing where

“Cloud computing: A pool of abstracted, highly

“Cloud computing is Web-based processing,

Fast Forward Your Development

Fast Forward Your Development