CCS336-CLOUD SERVICE MANAGEMENT UNIT-III

UNIT III CLOUD SERVICE MANAGEMENT

Cloud Service Reference Model, Cloud Service Lifecycle, Basics of Cloud Service Design,
Dealing with Legacy Systems and Services, Benchmarking of Cloud Services, Cloud Service
Capacity Planning, Cloud Service Deployment and Migration, Cloud Marketplace, Cloud
Service Operations Management.
CLOUD SERVICE REFERENCE MODEL

https://www.youtube.com/watch?v=Pg5nj90xh68&t=1082s
INTRODUCTION
Cloud service architecture is a crucial aspect of building and operating in the cloud. Let’s
explore what it entails:
Definition:
Cloud service architecture deals with the diagnosis, analysis, design, deployment, and
integration of cloud services. It allows organizations to run their businesses within the cloud
environment.
It considers the core business requirements and matches them with suitable cloud solutions.
Components of Cloud Architecture:
Frontend Platform: This includes user interfaces, client-side applications, and the client device
or network that enables users to interact with and access cloud computing services. For example,
opening a web browser on a mobile phone to edit a Google Doc.
Backend Platform: The backend components make up the cloud itself. These include computing
resources, storage, security mechanisms, management, and more. Examples of backend
components:
Application: The backend software or application that coordinates or fulfills client requests from
the frontend.
Service: The heart of cloud architecture, managing tasks on a cloud computing system, including
resource access (storage, application development environments, web applications).
Runtime Cloud: Provides the environment where services run, acting as an operating system that
handles service task execution and management.
The Conceptual Reference Model
Figure 1 presents an overview of the NIST cloud computing reference architecture, which
identifies the major actors, their activities and functions in cloud computing. The diagram depicts
a generic high-level architecture and is intended to facilitate the understanding of the requirements,
uses, characteristics and standards of cloud computing.

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As shown in Figure 1, the NIST cloud computing reference architecture defines five major
actors:
 cloud consumer.
 cloud provider.
 cloud carrier.
 cloud auditor.
 cloud broker.
Each actor is an entity (a person or an organization) that participates in a transaction or process
and/or performs tasks in cloud computing. Table 1 briefly lists the actors defined in the NIST
cloud computing reference architecture.
Figure 2 illustrates the interactions among the actors. A cloud consumer may request cloud services
from a cloud provider directly or via a cloud broker. A cloud auditor conducts independent audits
and may contact the others to collect necessary information. The details will be discussed in the
following sections and presented in increasing level of details in successive diagrams.

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Example Usage Scenario 1: A cloud consumer may request service from a cloud broker instead
of contacting a cloud provider directly. The cloud broker may create a new service by combining
multiple services or by enhancing an existing service. In this example, the actual cloud providers
are invisible to the cloud consumer and the cloud consumer interacts directly with the cloud broker.

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Example Usage Scenario 2: Cloud carriers provide the connectivity and transport of cloud
services from cloud providers to cloud consumers. As illustrated in Figure 4, a cloud provider
participates in and arranges for two unique service level agreements (SLAs), one with a cloud
carrier (e.g. SLA2) and one with a cloud consumer (e.g. SLA1). A cloud provider arranges service
level agreements (SLAs) with a cloud carrier and may request dedicated and encrypted connections
to ensure the cloud services are consumed at a consistent level according to the contractual
obligations with the cloud consumers. In this case, the provider may specify its requirements on
capability, flexibility and functionality in SLA2 in order to provide essential requirements in
SLA1.

Example Usage Scenario 3: For a cloud service, a cloud auditor conducts independent
assessments of the operation and security of the cloud service implementation. The audit may
involve interactions with both the Cloud Consumer and the Cloud Provider.

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Cloud Consumer The cloud consumer is the principal stakeholder for the cloud computing
service. A cloud consumer represents a person or organization that maintains a business
relationship with, and uses the service from a cloud provider. A cloud consumer browses the
service catalog from a cloud provider, requests the appropriate service, sets up service contracts
with the cloud provider, and uses the service. The cloud consumer may be billed for the service
provisioned, and needs to arrange payments accordingly. Cloud consumers need SLAs to specify
the technical performance requirements fulfilled by a cloud provider. SLAs can cover terms
regarding the quality of service, security, remedies for performance failures. A cloud provider may
also list in the SLAs a set of promises explicitly not made to consumers, i.e. limitations, and
obligations that cloud consumers must accept. A cloud consumer can freely choose a cloud
provider with better pricing and more favorable terms. Typically, a cloud provider‟s pricing policy
and SLAs are non-negotiable, unless the customer expects heavy usage and might be able to
negotiate for better contracts.

SaaS applications in the cloud and made accessible via a network to the SaaS consumers. The
consumers of SaaS can be organizations that provide their members with access to software
applications, end users who directly use software applications, or software application
administrators who configure applications for end users. SaaS consumers can be billed based on
the number of end users, the time of use, the network bandwidth consumed, the amount of data
stored or duration of stored data.
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Cloud consumers of PaaS can employ the tools and execution resources provided by cloud
providers to develop, test, deploy and manage the applications hosted in a cloud environment.
PaaS consumers can be application developers who design and implement application software,
application testers who run and test applications in cloud-based environments, application
deployers who publish applications into the cloud, and application administrators who configure
and monitor application performance on a platform. PaaS consumers can be billed according to,
processing, database storage and network resources consumed by the PaaS application, and the
duration of the platform usage.
Consumers of IaaS have access to virtual computers, network-accessible storage, network
infrastructure components, and other fundamental computing resources on which they can deploy
and run arbitrary software. The consumers of IaaS can be system developers, system administrators
and IT managers who are interested in creating, installing, managing and monitoring services for
IT infrastructure operations. IaaS consumers are provisioned with the capabilities to access these
computing resources, and are billed according to the amount or duration of the resources
consumed, such as CPU hours used by virtual computers, volume and duration of data stored,
network bandwidth consumed, number of IP addresses used for certain intervals.
Cloud Provider A cloud provider is a person, an organization; it is the entity responsible for making
a service available to interested parties. A Cloud Provider acquires and manages the computing
infrastructure required for providing the services, runs the cloud software that provides the
services, and makes arrangement to deliver the cloud services to the Cloud Consumers through
network access.
For Software as a Service, the cloud provider deploys, configures, maintains and updates the
operation of the software applications on a cloud infrastructure so that the services are provisioned
at the expected service levels to cloud consumers. The provider of SaaS assumes most of the
responsibilities in managing and controlling the applications and the infrastructure, while the cloud
consumers have limited administrative control of the applications.
For PaaS, the Cloud Provider manages the computing infrastructure for the platform and runs the
cloud software that provides the components of the platform, such as runtime software execution
stack, databases, and other middleware components. The PaaS Cloud Provider typically also
supports the development, deployment and management process of the PaaS Cloud Consumer by
providing tools such as integrated development environments (IDEs), development version of
cloud software, software development kits (SDKs), deployment and management tools. The PaaS
Cloud Consumer has control over the applications and possibly some the hosting environment
settings, but has no or limited access to the infrastructure underlying the platform such as network,
servers, operating systems (OS), or storage.
For IaaS, the Cloud Provider acquires the physical computing resources underlying the service,
including the servers, networks, storage and hosting infrastructure. The Cloud Provider runs the
cloud software necessary to makes computing resources available to the IaaS Cloud Consumer
through a set of service interfaces and computing resource abstractions, such as virtual machines
and virtual network interfaces. The IaaS Cloud Consumer in turn uses these computing resources,
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such as a virtual computer, for their fundamental computing needs Compared to SaaS and PaaS
Cloud Consumers, an IaaS Cloud Consumer has access to more fundamental forms of computing
resources and thus has more control over the more software components in an application stack,
including the OS and network. The IaaS Cloud Provider, on the other hand, has control over the
physical hardware and cloud software that makes the provisioning of these infrastructure services
possible, for example, the physical servers, network equipments, storage devices, host OS and
hypervisors for virtualization. A Cloud Provider‟s activities can be described in five major areas,
as shown in Figure 7, a cloud provider conducts its activities in the areas of service deployment,
service orchestration, cloud service management, security, and privacy.

cloud Auditor

A cloud auditor is a party that can perform an independent examination of cloud service controls
with the intent to express an opinion thereon. Audits are performed to verify conformance to
standards through review of objective evidence. A cloud auditor can evaluate the services provided
by a cloud provider in terms of security controls, privacy impact, performance, etc.
Auditing is especially important for federal agencies as “agencies should include a contractual
clause enabling third parties to assess security controls of cloud providers.
Security controls are the management, operational, and technical safeguards or countermeasures
employed within an organizational information system to protect the confidentiality, integrity, and
availability of the system and its information. For security auditing, a cloud auditor can make an
assessment of the security controls in the information system to determine the extent to which the
controls are implemented correctly, operating as intended, and producing the desired outcome with
respect to the security requirements for the system.

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The security auditing should also include the verification of the compliance with regulation and
security policy. For example, an auditor can be tasked with ensuring that the correct policies are
applied to data retention according to relevant rules for the jurisdiction.
The auditor may ensure that fixed content has not been modified and that the legal and business
data archival requirements have been satisfied. A privacy impact audit can help Federal agencies
comply with applicable privacy laws and regulations governing an individual‟s privacy, and to
ensure confidentiality, integrity, and availability of an individual‟s personal information at every
stage of development and operation.
Cloud Broker
As cloud computing evolves, the integration of cloud services can be too complex for cloud
consumers to manage. A cloud consumer may request cloud services from a cloud broker, instead
of contacting a cloud provider directly. A cloud broker is an entity that manages the use,
performance and delivery of cloud services and negotiates relationships between cloud providers
and cloud consumers. In general, a cloud broker can provide services in three categories [9]:
Service Intermediation: A cloud broker enhances a given service by improving some specific
capability and providing value-added services to cloud consumers. The improvement can be
managing access to cloud services, identity management, performance reporting, enhanced
security, etc. Service Aggregation: A cloud broker combines and integrates multiple services into
one or more new services. The broker provides data integration and ensures the secure data
movement between the cloud consumer and multiple cloud providers. Service Arbitrage: Service
arbitrage is similar to service aggregation except that the services being aggregated are not fixed.
Service arbitrage means a broker has the flexibility to choose services from multiple agencies. The
cloud broker, for example, can use a credit-scoring service to measure and select an agency with
the best score.
Cloud Carrier
A cloud carrier acts as an intermediary that provides connectivity and transport of cloud services
between cloud consumers and cloud providers. Cloud carriers provide access to consumers through
network, telecommunication and other access devices. For example, cloud consumers can obtain
cloud services through network access devices, such as computers, laptops, mobile phones, mobile
Internet devices (MIDs), etc. The distribution of cloud services is normally provided by network
and telecommunication carriers or a transport agent, where a transport agent refers to a business
organization that provides physical transport of storage media such as high-capacity hard drives.
Note that a cloud provider will set up SLAs with a cloud carrier to provide services consistent with
the level of SLAs offered to cloud consumers, and may require the cloud carrier to provide
dedicated and secure connections between cloud consumers and cloud providers.
Scope of Control between Provider and Consumer
The Cloud Provider and Cloud Consumer share the control of resources in a cloud system. As
illustrated in Figure 8, different service models affect an organization‟s control over the
computational resources and thus what can be done in a cloud system. The figure shows these
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differences using a classic software stack notation comprised of the application, middleware, and
OS layers. This analysis of delineation of controls over the application stack helps understand the
responsibilities of parties involved in managing the cloud application.

 The application layer includes software applications targeted at end users or programs. The
applications are used by SaaS consumers, or installed/managed/ maintained by PaaS
consumers, IaaS consumers, and SaaS providers.
 The middleware layer provides software building blocks (e.g., libraries, database, and Java
virtual machine) for developing application software in the cloud. The middleware is used
by PaaS consumers, installed/managed/maintained by IaaS consumers or PaaS providers,
and hidden from SaaS consumers.
 The OS layer includes operating system and drivers, and is hidden from SaaS consumers
and PaaS consumers. An IaaS cloud allows one or multiple guest OS‟s to run virtualized
on a single physical host. Generally, consumers have broad freedom to choose which OS
to be hosted among all the OS‟s that could be supported by the cloud provider. The IaaS
consumers should assume full responsibility for the guest OS‟s, while the IaaS provider
controls the host OS.
Benefits of Cloud Architecture:
Agility: Cloud architecture enables rapid deployment and scalability.
Cost Efficiency: Organizations can optimize costs by using cloud resources.
Scalability: Easily scale resources up or down based on demand.
Improved Security: Cloud providers offer robust security features.
Global Accessibility: Access services from anywhere with an internet connection.

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Remember that cloud architecture varies based on the specific business needs and
requirements. Organizations should strategically combine resources to build a cloud environment
that aligns with their goals.

CLOUD SERVICE LIFECYCLE

Cloud Computing is the booming industry of the present time and will continue to grow by many
folds in the near future. Nowadays, it’s really hard to find a safe, secure, and yet cost-effective
place to store your data and business-critical ideas. But, with the rise of cloud computing, this
problem is vanishing exponentially. Cloud provides us with a place where your data can not only
be stored but can also be accessed easily over the internet. Using Cloud Computing you can also
host and manage your applications.

Why we need Cloud Computing Solution?

By using Cloud Computing Solution, we get various benefits, some of which are as follows-
1. Improved software and hardware performance– through cloud computing solution one
can easily make out what will be the best software and hardware specification for the better
performance of the application running on the cloud.
2. Flexibility and affordability– Cloud Computing provides its users with a wide variety of
deployment models and functions through which they can choose the best options for their
applications. Cloud services are much more affordable.
3. Increased uptime and availability– it is highly available and has a great uptime which
help’s in managing more amount of traffic at a particular time.
4. Better collaboration with real-time sharing– cloud computing has great real-time sharing.

Who needs a Cloud Computing Solution?

Cloud Computing is available for every kind of users who want to deploy their applications onto
the cloud service.

Life Cycle of Cloud Computing Solution

To create such a cloud platform, it takes a long number of steps and dedicated time. Let’s now
look at the steps involved or the lifecycle of cloud computing solutions.
Step 1: Define the Purpose
The first and foremost step is to define the purpose for which you want to create a cloud. For
this, you have first to understand your business requirement and what type of application you
want to run on the cloud. After this, you have to decide whether you want your cloud to be
public, private, or hybrid.
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Step 2: Define the Hardware

Deciding what type of hardware, you will need is the most thought after the process. One needs
to be very precise in making the decision. For this, you will have to choose the compute service
that will provide the right support when you resize your compute capacity to maintain your
application running.

Step 3: Define the Storage

Every application needs a good amount of storage where it’s data can be stored safely. For any
application storage type that should be chosen carefully for this one should choose the storage
service where they can back up and archive their data over the internet.
Step 4: Define the Network
Networking is the key that will deliver your data to the end-users. So, the network must be
configured sincerely and should be flawless so that intruders cannot break into the network. One
should define the network that securely delivers data, videos, and applications with low latency
and high transfer speed.
Step 5: Define the Security
Security is a key aspect of any application. Set up your security service which enables services
for user authentication or limiting access to a certain set of users on your resources.
Step 6: Define the Management Process and Tools
The developer should have complete control over there resource and to configure these you
should define some management tools which monitor your cloud environment, resources used,
and the customer application running on it.
Step 7: Testing the Process
Testing is yet another important thing in the life cycle of deploying any application. All the faults
can figure out only through the testing process involved in it. During testing, you should verify
your application using various developer tools where you build, test, and deploy your code
quickly.
Step 8: Analytics
Finally, analyze and visualize data using analytics service where you can start querying data
instantly and get results then and there only. Once analyzing is done complete, your application
becomes ready you deploying.

Advantages

1. Cost Saving- It helps you to save substantial capital costs as it does not need any physical
hardware investments.
2. High Speed- Cloud computing allows you to deploy your service quickly in fewer clicks.
3. Backup and restore of data- Backup and restore of data is easy in cloud computing.
4. Reliability- It is highly reliable to use cloud computing solutions.

Disadvantages

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1. Performance can vary- Its performance depends on the speed and quality of the internet
2. Downtime- Cloud Computing Solutions has a great span of downtime.

CLOUD SERVICE DESIGN

Service design is aimed at designing what to offer users through a service catalog. At its most
basic, a service catalog is a listing of services from which a user can choose, thus initiating the
cloud service provisioning process. When designing a service catalog, it is helpful to identify your
cloud users to determine their needs. Potential users to consider while designing critical services
offerings include:

 The development team of software engineers

 R&D groups (for example, those engaged in scientific research)

 The application team in charge of building and maintaining internal applications

The challenge of service design is that there is a natural tension among users, who want the ability
to completely customize their offerings, and the IT group, which has to maintain tight controls on
the services in the environment.

The role of the service catalog is to bridge that gap. The service catalog enables IT to define the
areas of configuration and choice that users can select, according to their role. Users then feel some
measure of customizability of their cloud services.

The following attributes are often defined in the service catalog:

 Resource configurations – including CPU, memory, and storage allocations

 Operating systems

 Middleware stacks

 Applications offered

 Networking options – for both simple network configuration and multi-tenancy support

 Compliance packages

 Monitoring tools
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 Service levels

 Prices associated with each component, if desired

Inherent in this list is the ability to define multi-tier and single-tier application stacks, differing
deployment alternatives for each based on size and service tier, and all the configuration options a
user might require. These elements are defined as individual Service Blueprints within the BMC
Cloud Lifecycle Management solution. Once defined functionally, they are then characterized in
business language as service offerings, which are stored in the service catalog. It is from these
offerings that end users select their cloud services.

Fig: 9 Cloud service design overview

IT can choose which cloud services to offer to users and how customizable those services will be.
At one extreme, users can be offered a choice between only two or three non-customizable full-
stack configurations. On the other extreme, users can be offered an extensive set of choices for
each component, enabling them to fully customize their stack. A common middle-ground approach
is for IT to determine which broad offerings should be presented, which elements should be
optional and which required (like compliance or monitoring), and which users will be presented
with which options.

Beyond the contents of the service catalog, service design also includes the design of the
workflows that support each provisioning process. For many, the workflow will be an automated
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series of approvals. However, for some, human approval might be required, due to the sensitivity
or scale of the request. Designing these workflows is critical to service design.

To address the needs of cloud service design, you should:

 Design internal and external cloud services

 Define service tiers and service levels

 Create a "bill of materials" for each service

DEALING WITH LEGACY SYSTEMS AND SERVICES

A legacy system is outdated computing software and/or hardware that is still in use. The
system still meets the needs it was originally designed for, but doesn’t allow for growth. What a
legacy system does now for the company is all it will ever do. A legacy system’s older technology
won’t allow it to interact with newer systems.
As technology advances, most companies find themselves dealing with the issues caused by an
existing legacy system. Instead of offering companies the latest capabilities and services — such
as cloud computing and better data integration — a legacy system keeps a comany in a business
rut.
The reasons are varied as to why a company would continue to use a legacy system.
 Investment: Although maintaining a legacy system is expensive over time, upgrading to a
new system requires an up-front investment, both in dollars and manpower.
 Fear: Change is hard, and moving a whole company —or even a single department — to
a new system can inspire some internal resistance.
 Difficulty: The legacy software may be built with an obsolete programming language that
makes it hard to find personnel with the skills to make the migration. There may be little
documentation about the system and the original developers have left the company.
Sometimes simply planning the migration of data from a legacy system and defining the
scope of requirements for a new system are overwhelming.
Problems caused by legacy systems
A legacy system can cause a myriad of problems, such as exorbitant maintenance costs, data silos
that prevent integration between systems, lack of compliance to governmental regulations, and
reduced security. These issues eventually outweigh the convenience of continuing to use an
existing legacy system.
1. Maintenance is costly (and futile)
Maintenance is to expected with any system, but the cost of maintaining a legacy system is
extensive. Maintenance keeps the legacy system running, but at the same time, the company is

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throwing good money after bad. The status quo is maintained, but there’s never a chance for growth
with the legacy system.
At some point, there won’t be any more support for a legacy system and there won’t be any more
updates. If the system fails, there’s nowhere to turn.
Think of a weak dam with holes that you keep plugging and plugging, yet water keeps seeping
through. A legacy system continues to cost a company money for maintenance while never
providing new and innovative services.
2. Data is stuck in silos
Data silos are a byproduct of legacy systems. Many older systems were never designed to integrate
with each other in the first place, and many legacy software solutions are built on frameworks that
can’t integrate with newer systems. This means that each legacy system is its own data silo.
In addition to siloing the data they contain, legacy systems keep the departments that use them out
of data integration happening in the rest of the organization. If one team maintains a legacy system
while the rest of the company upgrades, that one team is isolated from business intelligence and
insights being created in integrated systems.
3. Compliance is much harder
Organizations today must abide by strict sets of compliance regulations. As these regulations
continue to evolve, a legacy system may not be equipped to meet them.
Compliance regulations like the GDPR, for example, require a company to know (and prove) what
customer data they have, where it is, and who is accessing it. Companies with customer data need
to maintain well-governed records, which is much harder (if not impossible) in outdated, siloed
systems.
4. Security gets weaker by the day
A data breach can cost a company dearly, and legacy systems are more vulnerable to hackers than
newer systems. Legacy systems by definition have outdated data security measures, such as hard-
coded passwords. That wasn’t a problem when the system was built, but it is now.
A legacy system not only leaves a company behind with old technology, it can also seriously
damage a company’s reputation by putting data at risk of a breach. At some point, a vendor no
longer supports the legacy system or provides much needed updates, opening the legacy system
up to a security risk. Even if a critical update is available, installing it can be risky and is postponed
for fear of breaking the system. As technology advances, risks increase for legacy systems.
5. New systems don’t integrate
As a company matures, adding new systems is necessary to stay competitive in today’s world. But
the older technology of a legacy system may not be able to interact with a new system. A
department still using a legacy system won’t receive all the benefits that a new system offers.

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Developing processes to make the systems work together is cumbersome and still leaves the
company open to security risks. This causes an inability for technological growth within a
company.

The key to updating legacy systems: successful data migration

The most important thing about updating a legacy system is to protect the data that already exists.
This can only be done through a successful data migration.
Imagine a hospital that has tens of thousands of historical patient records in a legacy system. It
would be devastating to lose that information because of an insecure legacy system. It would be
equally as devastating to lose that information due to a poor data migration.
A successful data migration includes:
 Extracting the existing data. Data in existing legacy systems might be siloed, splintered,
duplicated, or incomplete. It may exist in a variety of data stores and in a variety of formats.
Migrating data out of a legacy system starts with making sure it can all be extracted safely.
 Transforming data so it matches the new formats. The data is transformed to the new
system’s requirements through data mapping. Rarely does data from legacy systems do
an exact mapping to the new system. This step is vital to ensure that the new system
understands the data from the legacy system.
 Cleansing the data to address any quality issues. During the migration process is a
good time to clean data by getting rid of duplications, incomplete data, and data that is
not properly formatted. A legacy system with phone numbers that contains dashes won’t
work with a new system that doesn’t allow for them.
 Validating the data to make sure the move goes as planned. Once data is extracted,
transformed, and cleaned, a sample set of data is imported to test for problems and errors.
This weeds out potential issues before the new system goes live.
 Loading the data into the new system. The final step to a successful data migration is
loading all the data into the new system so it is ready for use.
Finance industry legacy system migration
Money Super Market needed to upgrade their legacy ETL to a modern, more competitive system.
It was imperative to offer their customers faster service and their legacy system couldn’t do that.
After an easy transition out of the legacy system, Money Super Market improved their product
comparison tools for customers while also increasing sales.
Public sector legacy system migration
The Regional Council of Languedoc-Roussillon handles economic growth in a five-region section
of France. Its success can affect up to 2.5 million people and 127,000 companies.
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The council dumped its legacy system for an open-source solution that allows for affordable,
gradual growth. The council now spends less time and money on maintenance, and has a much
clearer understanding of happenings in each region.
Get started with your legacy system migration
Legacy systems often become embedded due to convenience. But the truth is that it is costing time
and money, and setting a company up for failure.
One of the keys to a successful migration is data integration — combining data that resides in
different sources. This encourages collaboration both between internal users and external users.
Another key is security. Think of how many companies have been hit lately with class action suits
due to a data breach, not to mention the damage these breaches do to a company’s reputation.
Security checks should be in place before any migration.
Forward-thinking data integration solutions such as Talend Data Fabric makes the seemingly
overwhelming task of data migration easier. Talend Data Fabric protects a company by:
 Managing data across all environments (including multi-cloud and on premise).
 Providing built-in machine learning, data quality, and governance capabilities.
 Providing a full API development lifecycle support.
 Offering a user-based pricing model with no hidden fees.
Conclusion
Don’t let the fear of letting go of a legacy system put your company at risk. Data migration can be
done smoothly with the right tools.
BENCHMARKING OF CLOUD SERVICES
Benchmarking your cloud costs is an essential exercise in modern business operations. This
practice falls under the broader umbrella of cloud cost management and aims to provide a
comprehensive view of your spending pattern, helps identify inefficiencies, and aids in more
accurate budgeting. It also enables a comparison of your cloud spending with industry standards
against companies of the same scale or within your organization as a whole between different
business units. This provides transparency and enables cost optimization strategies to be learned
and shared. Without effective benchmarking, your organization risks overspending and
underutilizing your cloud resources.
We will explore best practices, methodologies, and tools to gain control over your cloud
spending and maximize business impact.
Why is Cloud Cost Benchmarking Important?
Maximizing Business Value
Maximizing business value is about achieving the best possible investment return, boosting
productivity, and enhancing your company’s overall operational effectiveness. This concept goes
beyond simply generating more profit. It involves optimizing all business areas, from improving
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customer service and streamlining operational processes to harnessing data analytics for
informed decision-making and implementing effective marketing strategies.
In cloud computing, it translates to leveraging cloud capabilities not just for cost-saving but for
business agility, scalability, and resilience. This holistic approach aids in creating a sustainable
competitive advantage.
Cloud Cost Optimization
Cloud Cost Optimization is a strategic process that aims to ensure each dollar spent contributes
meaningfully and positively towards achieving business goals. Cost optimization involves taking
a detailed look at your cloud expenditure and adjusting spending habits without sacrificing
productivity or operational efficiency. It is essential to not only reduce cloud costs but also to
control cloud spend.
This can include right-sizing resources to match workloads, using reservations for predictable
workloads, leveraging discounted pricing options, and regularly reviewing and auditing cloud
usage and costs. Cost optimization could decrease cloud waste and unnecessary expenses and
free up resources that can be better utilized in areas that drive business innovation and growth.
Benchmarking serves as a cornerstone in any cloud cost optimization strategy. By identifying the
baseline benchmark for your cloud spending, you can more effectively enact cost reduction
measures and optimize costs.
Preliminary Steps: Setting Up For Benchmarking
Understand Cloud Pricing Models
Before diving into benchmarking, familiarize yourself with the pricing models that cloud
providers offer. Whether it’s on-demand, reserved instances, or savings plans, knowing the
options can significantly aid in cost optimization. Cloud providers offer discounts to customers
based on their usage, commitment, and brand. These are a part of their Enterprise Discount
Programs (EDP) or Enterprise Agreements (EA).
Assess Your Cloud Environment
The next step is to take an inventory of your current cloud environment. Understand which of
your resources are part of legacy systems. What cloud services are you using? What specific
features are you using (e.g., what storage tier, instance types, instance families, etc)? What is
your monthly cloud bill, which cost center is using the most, and how are different cost centers
trending in spending? Are you maximizing your cloud investments, or are there unused
resources? What trade-offs can you make to reduce costs?

The Benchmarking Process

Cloud Bills and Usage Reports

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Your first step should be gathering cost data from the different cloud service providers. Examine
your cloud bill and usage reports for a holistic view of your spending and resource utilization. You
want to see how your cloud spend trends, which business units are using the most, which are
optimized on their cloud spend, and which are not. In addition, which resources are critical, non-
critical, or not being used.

Identifying cost centers is another step. Cost centers could range from various business operations
to different departments. Knowing your cost centers aid in more granular benchmarking.

Analyze Cloud Spending

Uncover Cost Anomalies

Look for any spikes in cost data, unused resources, or unnecessary data transfers that could skew
your overall cloud spend. We want to build a continuous discipline to drive spending and cost
reduction.

Compute Resources and Storage Capacity

Examine your usage of computing resources and storage capacity across various storage tiers. Are
there any opportunities to move data to less expensive storage tiers for cost reduction? For
example, are you storing archivable data in an active storage volume? If so, you could utilize
services automating the moving of archivable data into much cheaper archival storage (e.g., AWS
Glacier Storage Classes).

Compare with Industry Averages

Public Cloud Providers

Benchmarking tools analyze various parameters, including the company’s size, industry, region,
and specific usage patterns, to provide a comprehensive view of how you compare to peers.
Consulting firms and cloud service providers often offer such benchmarking services.
Understanding where your company stands in this context can reveal potential areas of over or
under-spending

Peer Comparisons

Perform peer comparisons to determine how your cloud spending stacks against similar
organizations, if possible. This data is sometimes hard to come by, but some consultancies create
research papers and benchmarks for different industries. Companies going public also put a wealth
of information in their S1 filings in the United States. These can be a gold mine of data for
benchmarking purposes.

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Best Practices for Ongoing Benchmarking

1. Regular Monitoring: Tracking and measuring your cloud costs is essential. Use tools
provided by cloud providers or third-party applications to get detailed reports. Cost-cutting
is not a one-off task.
2. Adapt and Adjust: Benchmarking is not a one-time process. As your business evolves
and expands, assumptions made early on may change. Review and adjust your benchmarks
regularly to keep them relevant and useful.
3. Stakeholder Communication: Keep all relevant stakeholders informed about the status of
cloud cost optimization efforts. Stakeholders should include people from engineering,
procurement, management, finance, product, and business owners. Use insights to drive
the discussions about cost optimization.
4. Include Multiple Metrics: Go beyond just cost. Consider performance, speed, security,
and agility, as they can provide a more holistic view of how well you’re doing compared
to others.

Conclusion
Benchmarking your cloud costs is not a one-off task but an ongoing process that requires planning,
data collection, and analysis. A comprehensive cloud cost benchmarking process will empower
your organization to allocate resources more wisely, optimize cost, and, most importantly,
maximize the business value of your cloud investments. By adhering to these best practices and
utilizing the cost optimization strategies outlined, organizations can ensure they are getting the
most out of their cloud environments while keeping costs in check.

CLOUD SERVICE CAPACITY PLANNING

What is capacity planning?

Capacity planning is the process of determining the amount of resources needed to meet the current
and future demands of an application or system. This essential task helps organizations ensure that
their IT infrastructure can support business operations and growth, avoiding the risks of under-
provisioned or over-provisioned resources. By analyzing historical data, trends, and other factors,
capacity planning enables organizations to make informed decisions about resource allocation,
scaling, and optimization.

The Importance of Capacity Planning in Hybrid and Multi-Cloud Environments

In today’s dynamic IT landscape, capacity planning plays a crucial role, especially in hybrid cloud
and multi-cloud environments. These complex ecosystems require organizations to monitor and
manage resources across multiple platforms and providers. Capacity planning helps businesses
optimize their resource utilization, reduce costs, and maintain performance levels across their
entire infrastructure.

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With the adoption of microservices, containers, and serverless computing, capacity planning
becomes even more critical. It enables organizations to balance the needs of their applications
while ensuring the efficient use of cloud resources, such as compute, storage, and networking.

Capacity Planning Strategies for Optimal Performance and Cost Management

Capacity planning involves various strategies to help organizations achieve the desired balance
between performance, cost, and resource utilization. Some of these strategies include:

1. Monitoring and analyzing resource utilization: Collecting and analyzing historical data on
resource usage patterns allows organizations to identify trends and make accurate forecasts about
future demands.
2. Leveraging automation and auto-scaling: Auto-scaling allows organizations to automatically
adjust their resources based on demand, ensuring optimal performance and cost efficiency.
3. Workload placement and optimization: Proper workload placement ensures that resources are
allocated optimally across the infrastructure, enhancing performance and reducing costs.
4. Performing regular capacity assessments: Regularly reviewing and adjusting capacity plans
helps organizations stay ahead of changing business needs and IT requirements.

CLOUD SERVICE DEPLOYMENT AND MIGRATION

A cloud migration strategy constitutes an overarching plan outlining the transition of an

organization's digital assets—which can include services, databases, IT resources, and
applications—from on-premises or co-located infrastructures into a cloud-based environment.
This process can be partial or comprehensive, even involving the shift from one cloud platform to
another, often referred to as cloud-to-cloud migration.

The execution of a cloud migration strategy typically unfolds in five primary stages: preparation,
planning, migration, operation, and optimization. This intricate process is not limited to moving
data from local data centers to renowned public cloud service providers like AWS, Google Cloud,
or Microsoft Azure; it can also entail moving from one cloud service to another.

For businesses embarking on their initial journey to the cloud, there are several pivotal factors to
consider. An effective cloud migration strategy can provide a clear roadmap, ensuring a smooth
transition that optimizes the operational efficiencies offered by cloud platforms.

This is part of our series of comprehensive guides about Infrastructure as a Service (IaaS).

In this, you will learn:

 What are the Main Benefits of Migrating to the Cloud?

 What are Common Cloud Migration Challenges?
 Cloud Migration Strategies
 5 Phases of Cloud Transformation
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 Migrating Data to the Cloud with NetApp Cloud Volumes ONTAP

What are the Main Benefits of Migrating to the Cloud?

Here are some of the benefits that compel organizations to migrate resources to the public cloud:

 Scalability
Cloud computing can scale to support larger workloads and more users, much more
easily than on-premises infrastructure. In traditional IT environments, companies had to
purchase and set up physical servers, software licenses, storage and network equipment to
scale up business services.
 Cost
Cloud providers offer managed services that lower your operational overhead and
simplify maintenance tasks such as upgrades. Companies migrating to the cloud can
spend significantly less on IT operations. They can devote more resources to
innovation—developing new products or improving existing products.
 Performance
Migrating to the cloud can improve performance and end-user experience. Applications
and websites hosted in the cloud can easily scale to serve more users or higher
throughput, and can run in geographical locations near to end-users, to reduce network
latency.
 Digital experience
Users can access cloud services and data from anywhere, whether they are employees or
customers. This contributes to digital transformation, enables an improved experience for
customers, and provides employees with modern, flexible tools.

What are Common Cloud Migration Challenges?

Cloud migrations can be complex and risky. Here are some of the major challenges facing many
organizations as they transition resources to the cloud.

Lack of Strategy

Many organizations start migrating to the cloud without devoting sufficient time and attention to
their strategy. Successful cloud adoption and implementation requires rigorous end-to-end cloud
migration planning. Each application and dataset may have different requirements and
considerations, and may require a different approach to cloud migration. The organization must
have a clear business case for each workload it migrates to the cloud.

Cost Management

When migrating to the cloud, many organizations have not set clear KPIs to understand what
they plan to spend or save after migration. This makes it difficult to understand if migration was
successful, from an economic point of view. In addition, cloud environments are dynamic and
costs can change rapidly as new services are adopted and application usage grows.

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Vendor Lock-In

Vendor lock-in is a common problem for adopters of cloud technology. Cloud providers offer a
large variety of services, but many of them cannot be extended to other cloud platforms.
Migrating workloads from one cloud to another is a lengthy and costly process. Many
organizations start using cloud services, and later find it difficult to switch providers if the
current provider doesn't suit their requirements.

Data Security and Compliance

One of the major obstacles to cloud migration is data security and compliance. Cloud services
use a shared responsibility model, where they take responsibility for securing the infrastructure,
and the customer is responsible for securing data and workloads.

So while the cloud provider may provide robust security measures, it is your organization’s
responsibility to configure them correctly and ensure that all services and applications have the
appropriate security controls.

The migration process itself presents security risks. Transferring large volumes of data, which
may be sensitive, and configuring access controls for applications across different environments,
creates significant exposure.

7 Cloud Migration Strategies

There are seven cloud migration strategies: rehosting, redeployment, repackaging, refactoring,
repurchasing, retiring, and retaining. These were originally called the “5 Rs” by Gartner, and
later expanded to “7 Rs”. Organizations looking to migrate to the cloud should consider which
migration strategy best answers their needs. The following is a brief description of each:

1. Refactor/Re-architect. Transform an application by altering its architecture and

leveraging cloud-native features to enhance agility, performance, and scalability. This
usually involves porting the operating system and database.
2. Replatform (Lift and Reshape). Transfer an application to the cloud, incorporating
some optimization to benefit from cloud capabilities.
3. Repurchase (Drop and Shop). Transition to another product, often by adopting a SaaS
model instead of a traditional licensing approach.
4. Rehost (Lift and Shift). Migrate an application to the cloud without implementing
changes to utilize cloud features.
5. Relocate (Hypervisor-Level Lift and Shift). Shift infrastructure to the cloud without the
need for new hardware, application rewrites, or adjustments to current operations.
Technologies like VMware Cloud enable this migration approach.
6. Retain (Revisit). Maintain applications in their original environment. This can include
applications that need significant refactoring, which can be deferred to a future time, or
legacy applications that remain in place due to a lack of business justification for
migration.

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7. Retire. Discontinue or eliminate applications that are no longer required in the source
environment.

5 Phases of Cloud Transformation

When considered more broadly, the cloud migration process is called cloud transformation. The
cloud transformation process is often broken down into five phases: prepare, plan, migrate,
operate, and optimize. These phases provide a holistic approach to moving workloads and data to
the cloud, helping to minimize disruption and maximize benefits.

1. Prepare

In the preparation phase, organizations establish their business objectives for cloud migration.
These objectives might include increased agility, cost savings, improved performance, or
enhanced scalability. In this phase, organizations should perform an initial assessment of their IT
infrastructure to understand what resources they have and how these might be migrated.
Organizations should also evaluate their cloud readiness, identifying any gaps in skills or
technologies that might need to be addressed before migration can occur.

Build a business case for every application you plan to migrate to the cloud, showing an
expected total cost of ownership (TCO) on the cloud, compared to current TCO. Use cloud cost
calculators to estimate future cloud costs, using realistic assumptions - including the amount and
nature of storage used, computing resources, taking into account instance types, operating
systems, and specific performance and networking requirements.

2. Plan

Once an organization has established its business objectives and evaluated its cloud readiness,
the next phase is to create a detailed migration plan. This plan should include a roadmap for the
migration process, detailing which workloads will be migrated and in what order. Organizations
should also decide on their preferred cloud architecture and identify any necessary modifications
to their existing applications or data. This phase is also the time to address any compliance or
security requirements related to the migration.

In this stage it is important to assess your environment and determine the factors that will govern
the migration, such as critical application data, legacy data, and application interoperability. It is
also necessary to determine your reliance on data: do you have data that needs to be resynced
regularly, data compliance requirements to meet, or non-critical data that can possibly be
migrated during the first few passes of the migration?

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Determining these requirements will help identify which data needs to be migrated and when, if
the data needs any scrubbing, the kind of destination volumes to use, and whether you’ll need
encryption of the data both at rest and in transit.

3. Migrate

The migrate phase is where the actual process of moving data, applications, and other workloads
to the cloud occurs. This phase can involve a variety of techniques, including lift-and-shift
(moving an application to the cloud without modification), refactoring (modifying an application
to take advantage of cloud-native features), or even completely rebuilding applications.
Migrations should be carefully monitored to ensure they are proceeding as planned and that any
issues are promptly addressed.

Data migration is a critical part of this process. If your data becomes inaccessible to users during
a migration, you risk impacting your business operations. The same is true as you continue to
sync and update your systems after the initial migration takes place. Every workload element
individually migrated should be proven to work in the new environment before migrating
another element. You’ll also need to find a way to synchronize changes that are made to the
source data while the migration is ongoing.

4. Operate

Once workloads have been successfully migrated to the cloud, organizations enter the operate
phase. This phase involves the management of workloads in the cloud environment, including
monitoring performance, managing resources, and maintaining security and compliance. During
this phase, organizations should continue to refine their operations based on feedback and
performance data, making necessary adjustments to optimize cloud operations.

Apart from real-time monitoring, you should also assess the security of data stored in the cloud
to ensure that working in your new environment meets regulatory compliance laws such as
HIPAA and GDPR.

Another consideration to keep in mind is meeting ongoing performance and availability

benchmarks to ensure your RPO and RTO objectives should they change.

5. Optimize

The final phase of the cloud migration process is optimization. In this phase, organizations look
for ways to improve the performance and efficiency of their cloud environment. This can involve
refining cloud operations, identifying opportunities for cost savings, and implementing cloud-
native features or services to enhance performance. The optimization phase is ongoing, as
organizations continually look for ways to improve their cloud operations and drive greater
business value.

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Each of these phases plays a crucial role in ensuring a successful cloud migration. By following
these steps, organizations can minimize risks and disruptions, ensure a smooth transition to the
cloud, and maximize the benefits of their cloud investment.

CLOUD MARKETPLACE

Introduction

Cloud marketplaces are powered by cloud computing infrastructure and services. This includes
infrastructure as a service (IaaS) providers, which offer computing resources such as virtual
machines, storage, and networking, as well as platform as a service (PaaS) providers, which offer
a platform for building and deploying applications.

Cloud marketplaces also rely on software as a service (SaaS) providers, which offer software
applications that can be accessed and used over the internet. In addition, many cloud marketplaces
offer tools and services for developers, such as APIs, libraries, and documentation, to help them
build and deploy applications on the cloud.

Cloud marketplaces typically operate on a subscription or pay-per-use model, where users pay for
the cloud services and products they consume. Some cloud marketplaces also offer free tiers or
trials, which allow users to try out services and products before committing to a purchase.

Overall, cloud marketplaces are powered by a combination of cloud infrastructure, services, and
tools that enable users to discover, purchase, and use a wide range of cloud solutions.

Who are the biggest providers of cloud marketplaces?

The biggest providers of cloud marketplaces are typically the major cloud computing providers,
such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform. These
companies offer a wide range of cloud services and products through their respective cloud
marketplaces, including infrastructure as a service (IaaS), platform as a service (PaaS), software
as a service (SaaS), and more.

In addition to the major cloud providers, there are also a number of smaller, specialized cloud
marketplaces that focus on specific industries or types of services. For example, the Salesforce
AppExchange is a cloud marketplace for sales, service, and marketing applications, and the
Docker Hub is a cloud marketplace for containerized applications.
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Overall, the size and scope of a cloud marketplace can vary widely, with some offering a wide
range of services and products from multiple vendors, and others focusing on a specific niche or
type of solution.

What are the benefits of cloud marketplaces?

There are several benefits to using a cloud marketplace:
Convenience: Cloud marketplaces provide a centralized location where users can browse and
compare a wide range of cloud services and products from multiple vendors. This makes it easy
for users to find the right solutions for their needs and try them out before committing to a
purchase.
Cost savings: Cloud marketplaces often offer discounts and special deals on cloud services and
products, which can help users save money. In addition, users can typically scale their usage up or
down as needed, which can help reduce costs.
Time savings: Cloud marketplaces can help organizations save time by streamlining the process
of sourcing and implementing cloud solutions. Users can easily find and compare different options,
and can typically sign up for and start using services quickly.
Risk reduction: By providing a central location for sourcing cloud services and products, cloud
marketplaces can help users reduce the risk of choosing an unreliable or untested vendor. Users
can typically find reviews and ratings for different products and services, which can help them
make informed decisions.
Easy integration: Many cloud marketplaces offer APIs and other tools that make it easy for users
to integrate cloud services and products into their existing systems and processes. This can help
organizations get up and running with new solutions more quickly and efficiently.
What are some problems with cloud marketplaces?
There are a few potential problems that users may encounter when using cloud marketplaces:
Limited choice: While cloud marketplaces typically offer a wide range of services and products,
the selection may be limited compared to what is available directly from individual cloud
providers.
Hidden costs: Some cloud services and products may have additional fees or charges that are not
immediately apparent, such as usage fees or data transfer charges. Users should be sure to carefully
review the terms and conditions of any service or product they are considering purchasing to ensure
that they understand all of the costs involved.
Security concerns: Users may be concerned about the security of their data when using cloud
services and products from third-party vendors. It is important for users to carefully evaluate the
security measures and policies of any vendor they are considering using, and to ensure that their
own security practices are up to date.

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Complex pricing structures: Some cloud services and products may have complex pricing
structures that can be difficult to understand, which can make it challenging for users to accurately
predict and budget for their costs.
Compatibility issues: Users may encounter compatibility issues when integrating cloud services
and products from different vendors into their existing systems and processes. It is important for
users to carefully evaluate the compatibility of any service or product they are considering using
to ensure that it will work seamlessly with their existing systems.

CLOUD SERVICE OPERATIONS MANAGEMENT

Cloud computing is the new normal now. But as we move to the cloud in a big way with a mix of
cloud configurations — on-premises, private, and third-party cloud services with many tools —
managing the resulting complexities have become tough, especially for the IT teams. You can’t
apply traditional IT operation methods to cloud-based architectures. What you need are standard
operating procedures for long-term cloud operations.
This is where an effective CloudOps strategy – or, to put it simply, cloud operations management
– comes in. It’s the process of identifying and defining the processes and procedures to optimize
IT services within the cloud environment.
Cloud operations management is not about new tools or technologies; rather, it’s how you use
those tools within your set procedures. A solid game plan is needed in all aspects – from security
to problem management, monitoring, and performance.
Why Consider Cloud Operations Management?
Here are key reasons why enterprises should think seriously about using CloudOps:
Security Operations
Security operations or SecOps is a shared responsibility between the enterprise CloudOps teams
and the cloud provider. But in a rush to move to the cloud, it can get confusing and become a major
source of breaches. Such breaches aren’t due to a lack of sophisticated technologies but are a lack
of understanding about the roles and responsibilities.
Scalability and Automation
Through the cloud, capacity can be increased or reduced at any time without investing in additional
physical space or hardware. The adoption of CloudOps virtualizes the capacity planning and asset
management of a business, making it simpler. Additionally, as the cloud automates many
operations across the SDLC, it significantly reduces disruptions to applications or users.

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Growing Complexity
As large-scale cloud adoption gathers steam, and businesses choose multiple, best-of-breed
platforms and tools, the entire cloud spectrum becomes too complex to manage. While siloed cloud
dev and migration teams make their own calls around what technology to use, integrating or
migrating between multiple applications without set guidelines can become challenging, fast.
Remote Cloud Platforms
The remote nature of cloud-based platforms means that the ops team doesn’t have direct control
as the cloud provider schedules and executes all the fixes. Though giving up the time-consuming
control of platforms is good, special care must be taken to manage the operational aspects.

Benefits of Cloud Operations Management

Challenges in Embracing Cloud Operations

Transition to Serverless Functions

When traditional operations are the bedrock of the underlying infrastructure, it becomes
challenging to merge CloudOps seamlessly. Unless a business has a set of best practices in place

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that streamline shared tasks – monitoring, and management between physical and cloud-based
systems – teams will end up becoming more siloed.

Troubleshooting
With CloudOps, the teams work on dashboards and tools that automate much of the monitoring
process. This means that alerting and monitoring need to be cloud-optimized, resulting in going
back and forth between the cloud help desk and the traditional help desk without getting a clear
answer from either.

Culture
Culture is perhaps the biggest impediment to a successful CloudOps transformation, demanding a
company-wide shift in mindsets by using the same tools, following the same practices, and
working together under the same leadership.
Conclusion
Cloud management is the organized management of cloud computing products and services that
operate in the cloud. It refers to the processes, strategies, policies, and technology used to help
control and maintain public and private cloud, hybrid cloud, or multicloud environments.
Today, you are likely operating partially or entirely in the cloud. As such, your organization needs
a way to evaluate, monitor, and manage cloud computing resources, infrastructure, and services in
the most efficient way possible.
Keeping your cloud environments running smoothly requires many underlying tasks, from
provisioning and orchestration of resources to automating cloud consumption and deployment, to
lifecycle management of resources, cost optimization, performance monitoring, and security.

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