Cloud Business Model - an overview (2022)

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Cloud Computing

Caesar Wu, Rajkumar Buyya, in Cloud Data Centers and Cost Modeling, 2015

1.4 A Brief History of Cloud Computing Definitions

The first academic term of cloud computing was casted by Ramnath K. Chellappa [22] in 1997. In his paper of “Intermediaries in cloud computing: A new computing paradigm,” Ramnath claimed that a computing paradigm will not be restricted within a technical boundary but will be defined by economic rationality. During the 1990s, the term “cloud” meant large Asynchronous Transfer Mode (ATM) networks because the packet switches formed a virtual private network (VPN), which can balance data traffic and utilize the network bandwidth very effectively.

Strictly speaking, the term “cloud computing” is still evolving because it is supported by several emerging technologies, such as server virtualisation (hardware), multitenancy (software) and auto-orchestration (operational process). It is less than two decades old. If we look back at the history of computing, in the 1960s, cloud computing might have just meant “sharing.” In the 1970s, it might have meant the advanced function of a mainframe computer, such as virtual memory. In the1980s, it would refer to parallel computing. In the earlier 1990s, the meaning might have extended to grid computing from High-Performance Computing (HPC). In the later 1990s, the meaning of cloud computing might have shifted into “virtualization.” During this period, VMware launched its VMware workstation 1.0. It has a similar meaning of a term used today Infrastructure as a Service (IaaS). At the same time, Marc Benioff [1] established his own business,, to sell subscription-based Customer Relationship Management (CRM) software or applications, which competed head-to-head with Thomas Siebel’s Siebel Systems or license-based software. Marc’s software delivery model is what now we call Software as a Service (SaaS). Actually, service on-demand, utility computing, and multitenant service models have been widespread since then. In 2002, Amazon Web Service (AWS) launched two IaaS products, namely Elastic Compute Cloud (EC2) and Simple Storage Service (S3). These are representative of the contemporary meaning of cloud computing or more precisely, the public cloud. Very often, the terms server virtualisation, IaaS, SaaS, and cloud computing become interchangeable.

All these definitions not only provide the evolutionary meaning of the new business concept that we are trying to investigate here, but also make us think beyond these definitions. Behind the cloud definition, we can see that the real benefits that the cloud can bring are infrastructure sharing, increasing utilization rate, auto-provisioning, speed to market, and minimizing up-front capex. In essence, it can create cost efficiency.

After more than one decade of evolution, the term “cloud computing” has become popular in the information technology (IT) world, especially among many medium and large organizations. This is the result of the combination effects of the Internet, web browsers, new hypervisor technologies, parallel computing (multicore processors), open source software, auto-orchestration, and server virtualization. These cloud technology advances have not only made the new business model (cloud computing) possible, but also very attractive to many companies’ decision makers because this new way of IT resource consumption has three very irresistible features or characteristics for the business:

Pay as you go (PAYG)

Elastic or scalable and unlimited computer resources pool

No up-front capex

These new characteristics are perfectly aligned with the requirements of a competitive advantage business model, which has to possess the following:

Speed to market

Significant reduction of provisioning time (auto-provisioning)

Shift of the business focus from technology to service orientation

Gain in return on investment (ROI)

Focus on core business or competence

Improvement of customer experience of the services

Advancement of company’s competitiveness in the market

Focus Consulting Group [23] made a very good comparison between technology (blade servers and hypervisors) evolution and business value propositions. We extended the timeline from 2007 to 2016. Since 2007, many hardware and software vendors have joined the cloud race (see Figure 1.2 for hardware vendors; Cisco, Huawei, and Oracle/Sun have joined in the x86 server market). This has made one of the key cloud elements (server) a commodity product. This is one of the influential factors that impacts cloud evolution. We will give more details in Part III of this book.

(Video) 2 The Cloud Business Model

Cloud Business Model - an overview (1)

Figure 1.2. Technologies, issues, and business value propositions from 2001 to 2016.

If we have a further extension of the time span, we can find a macro trend of a computing cost model that has actually shifted from a “make” orientation of consuming IT resources (or “self-make,” especially for software) to “buy” and from a “buy” orientation to today’s “lease.” If we look from an operational perspective, the macro trend of computing has been moving from a “centralization” model to “decentralization” and from “decentralization” to “re-centralization” (see Figure 1.3).

Cloud Business Model - an overview (2)

Figure 1.3. Computer industry and market: 60-year time span.

Both diagrams have perfectly illustrated that the concept of cloud computing is the result of business requirements and the evolution of various IT technologies. It may potentially drive a business to be much more competitive. The concept of cloud computing is an evolution of many IT paradigms. The fundamental infrastructure to underpin the cloud is actually the integration of the data center resource and Internet capability.

During the “make” or “build” era, an enterprise had to build its own hardware and applications. Normally, it would take years to build a vertical proprietary application, such as Financial Resource Management (FRM), Supply Chain Management (SCM), and other ERP packages. The issue with the homegrown application is that it is not compatible with other applications. You need a team of dedicated IT professionals to maintain it. It is very costly.

The popular solution to resolve this issue of “making” was either outsourcing or “buying” an application licence “off-the-shelf.” However, many enterprise customers quickly found their IT budget growth well exceeded its revenue growth and the utilization rate of IT resources was very low. This led to’s “leasing”- or “subscribing”-based IT resource consumption model or SaaS. Since 2000, the “buy” cost model has been slowly shifted to a “lease” model. This gave rise to the birth of cloud computing. From a cloud consumer’s perspective, the “lease” model can deliver many business values in term of financial, operational, and infrastructure (see Figure 1.3) benefits. Subsequently, it is inevitable that we have seen more than one kind of definition for cloud computing. However, the bottom line of the cloud for any cloud consumer is to deliver cost efficiency and market competitiveness for its business.

When a cloud service provider defines the cloud, it focuses on the cloud market perspective. As we have illustrated before, Gartner publishes its historical hype cycle of many emerging technologies every year. In 2013, Gartner prophesized that cloud computing was already out of the peak of inflated expectations and expected to dip into so-called plateau of productivity for 2 to 5 years (see Figure 1.4). Big Data, which is one of applications of cloud computing, is now at the peak of inflated expectations in 2013.

Cloud Business Model - an overview (3)

Figure 1.4. Gartner’s Hype Cycle for Emerging Technologies from August 2013 [8].

If we align Gartner’s hype cycle with the Technology Adoption Life Cycle, we can see the cloud is now getting into so called “Chasm” zone in Geoffrey Moore’s theory [12] (see Figure 1.5).

Cloud Business Model - an overview (4)

Figure 1.5. Combination of Gartner’s Hype Cycle and Moore’s Technology Adoption Life Cycle.

If these two cycles can be correlated, we can see there is a “Chasm” period. It will be a tough period for many cloud service providers because the cloud market will become overcrowded and it will difficult to see the results from the many investments that were made in haste before the Chasm era. As a result, the IT assets would be quickly devaluated because of a lower IT asset utilization rate. This would lead to cloud benefits being quickly evaporated in comparison with the traditional dedicated hosting model. People may wonder why we bothered to develop a cloud.

In order to answer this question, we should understand that the “cloud” is not just a single technology, but rather a combination of many complex domains. Gartner has another hype cycle that is especially designed for cloud computing (see Figure 1.6). From Figure 1.6, we can see that cloud computing consists of many complex domains, such as cloud orchestration (Cloud Management Platforms), IaaS middleware, cloud Business Process Management (BPM), cloud security, and Cloud Service Brokerage. Some of them are just on the horizon in the next 2 to 5 years according to Gartner. In essence, cloud computing is a combination of different emerging cloud technologies during a long period of time. We should consider the cloud a long-term journey and paradigm shift that transforms the method of computing consumption from dedicated infrastructure to a completely shared and elastic domain. Geoffrey Moore suggested that the right way to cross the Chasm period is to have a proper business plan in the first place in order to fight against any emotional and immature decisions during market fluctuations.

Cloud Business Model - an overview (5)

Figure 1.6. Gartner’s Hype Cycle of Cloud Computing (August 2012).

Because the cloud has been leveraging different emerging technologies, we should consider it as a large and complex system that is crossing many different disciplines. (business, decision making, economics, and computer science). Thus, we should define the term “cloud computing” in a unique way.

From a certain viewpoint, Figure 1.6 is a complement of Figure 1.4 and Figure 1.2 is a complement of Figure 1.3. They have demonstrated that cloud computing is one of the rapidly emerging technological paradigms. But it has transformative impact for IT and other service industries.

(Video) Cloud Computing In 6 Minutes | What Is Cloud Computing? | Cloud Computing Explained | Simplilearn

For the sake of clarifying the logic of this transformation, we review four other computing paradigms that are closely associated with the cloud. They are:

Parallel computing

Distributed computing

Grid computing

Utility computing

Of course, there are other types of computing that are also associated with the cloud, such as high-performance computing (HPC), ubiquitous computing, pervasive computing, dedicated computing and on-demand computing. We will briefly highlight their important points.

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New business models for reading in the cloud

José-Antonio Cordón-García, ... Daniel Linder, in Social Reading, 2013


Market turbulence generates uncertainty and shakes consumer and business confidence, lowering the value of financial assets. History tells us, however, that changes to the economic climate also offer unique opportunities for those who are capable of looking beyond short-term difficulties to seek new projects. Organisations may choose to stagnate or to prepare for success and leadership roles. If they choose the latter option, returns from hard-fought cost-cutting battles may turn into improvements in infrastructure, more rational integration processes, and essential changes in market presence or positioning to fill new niches or those freed by competitors. In this context new cloud business models are operating outside the market of digital contents. Cloud computing is nowadays one of the most important technological initiatives of business computing. It is changing the way in which businesses access services on the Internet and also the speed and flexibility of business without increasing costs.

As for the applications, these will essentially allow reading and writing on the Internet, and the creating of contents and also sharing them, labelling them, assessing them, disseminating them, mixing them, remixing them, and geolocating them. A large proportion of these applications are in the cloud and will depend more on communications than on computer capacity. These applications include characteristics or uses that give them their social features, such as the possibility of making assessments, sharing contents in applications and social networks, making comments, and receiving recommendations based on the experiences and interactions of other users, the objective of which is conversation or interaction with and between users.

Reading in the cloud is the reading of eBooks independently of the device or format, provided that they are stored on the Internet. The independence of the text as far as its content is concerned gives it a multi-format and multi-device nature that permits reading at any time, in any place, and from any device. It also makes the synchronising of reading possible; one can start to read on a computer at work, continue on a Smartphone, and subsequently do so on a device designed for the purpose, retaining all personal elements such as notes, underlinings, and reading points.

In addition to the development of mobile technologies with an increased useability capacity, reading in the cloud is providing a range of added value services that are playing a vital part in the growth and transformation of the publishing industry in a drift towards all things digital. Although these development models facilitate the availability, access, and ubiquity of information, they are in a no-man’s-land concerning fundamental rights such as data secrecy and security, to which close attention will need to be paid to ensure they are not violated.

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(Video) Cloud Computing Services Models - IaaS PaaS SaaS Explained

Introduction. Software Architecture for Cloud and Big Data: An Open Quest for the Architecturally Significant Requirements

Rami Bahsoon, ... Ivan Mistrik, in Software Architecture for Big Data and the Cloud, 2017

1.1 A Perspective into Software Architecture for Cloud and Big Data

Cloud has revolutionized the way we look at software architectures. The emergence of cloud and its “as-a-service” layers (e.g., software, platform, data, infrastructure-as-a-service, etc.) have significantly induced the architecture of software systems. Cloud marketplaces, multitenancies, federation, elastic and on-demand access have enabled new modalities to the way we incept, compose, architect, deploy, maintain, and evolve architectures of software systems. Properties related to dynamic access of resources, resource pooling, rapid elasticity and utility service provision, economies of scale, dynamicity and multitenancy are arguably the emergent “architecturally significant requirements” [1] related to the cloud. These properties have influenced not only the behavior of the software system benefiting from the cloud, but also its structure, style, and topology. It has also moved architecting practices towards architecting for uncertainty, where architecture design decisions are mere complex to anticipate the extent to which they can operate in dynamic environments, and cope with operational uncertainties and continuous changes [2]. More interestingly, the cloud business model has also transformed architecting into economics-driven architecting, where utility monitoring, risk avoidance, utilization, technical debt monitoring, and optimizing for Service Level Agreements (SLA) are among the business objectives. In this context, architecting in/for the cloud has become an exercise that requires continuous alignments between enterprise and technical objectives.

The unbounded scalability of the cloud has “accidentally” led to “data farming”, due to the volume and variety of data accumulated and/or assimilated across various service cloud layers and constituent architectural components. The accidental presence of the phenomena had steered a new hype for “big data” and a need for architecting for big data in the presence of the cloud. The hype has consequently provided new opportunities and modalities for data-driven services. In addition, data has introduced new constraints and requirements of architecturally significant nature.

Architecting for the cloud and data is difficult to decouple. The coupling has led to new architecture styles and design paradigms that are designed with the evolution of data and its management as first class entities. Several architecture styles and architecture-centric development processes that leverage the benefits of the cloud and big data have emerged. The fundamentals of these styles cannot be understood in isolation in what we term as “cloud architecturally significant requirements.”

We quest for cloud architecturally significant requirements and explain their implications on architecting for/in the cloud in the presence of big data. We posit that properties that relate to multitenancy, dynamism and elasticity, service Level Agreements (SLAs) constraints, value-seeking architecting through autonomic decisions, cloud marketplaces, big data management for volume, velocity, veracity, and scale are essentially architecturally significant requirements that are implied by the cloud as a distributed on-demand operating environment. Awareness of these requirements can help architects and practitioners to formulate architecture design decisions and choices, which are cloud-explicit. We hope to provide insights that can help in the systematic architecting for cloud-based systems and lessen generality and ad hoc practices.

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Cloud security issues and challenges: A survey

Ashish Singh, Kakali Chatterjee, in Journal of Network and Computer Applications, 2017

6.7 Trust management issues

Trust is a non measurable parameter in cloud computing. It must be present in between the customer and the cloud provider for outsource their business and data. In addition, the trust also related to the resources those are used, including storage device, web based access, computational algorithms, virtualization mechanisms, etc. There are many reasons for an unsuccessful trust established between two parties. The trust plays an important role for any system. It is not only for a cloud system, but also required in distributed networks, peer to peer networks and sensor networks. The Table 10 summarized trust security issues and their solutions related to the cloud security system.

Table10. A comprehensive study on trust management issues and solutions.

Security topicSecurity issuesStudies/surveySecurity solutions
Cloud to cloud trustInvalid enterprise trust modelAmoroso (2013)Cloud Trust Authority provides security of the cloud services from multiple providers Habib et al. (2011)
Cloud environment opennessGharehchopogh and Hashemi (2012)Use different trust models Xu et al. (2015)
Un-trusted employees
Password sharing
Human aspectPassword strength and commonnessTownsend (2009)Public Key Infrastructure based trust model
Social engineeringDoel (2013)Evidence based trust model
Phishing attackFireEye (2015) Lineberry (2007)
ReputationIsolation of reputationENISA (2015) Monfared and Jaatun (2011)Reputation based trust model
Fate-sharingChen et al. (2010) Roberts and Al-Hamdani (2011)SLA verification based trust model
Evidence based trust model
Providers reports truthfulnessPolicy based trust
Trust on the audit-ability reportsJurisdictional audits, court systemGonzalez et al. (2012)Use cloud auditor's assessment
Data localityChen et al. (2010) Zhou et al. (2010)Accreditation by Auditing Standards Board of
Lack of privacy capable audits techniquesRoberts and Al-Hamdani (2011)AICPA
Anonymizationlogs anonymizationLKC privacy model Mohammed et al. (2009)
Data Anonymization Sedayao (2012)

6.7.1 Cloud to cloud trust

In the cloud infrastructure, trust is an important aspect for the security of the business related application and service. Day by day cloud technology is improved. So, for improvement of the technologies, trust is an important parameter those are considered at the improvement time of the cloud. The cloud computing services, business applications, communication technologies is very dynamic. It changes according to the user and provider requirements. This is the characteristic of the cloud computing. But, this creates trust breaching and other issues. So, people required a more trustworthy model in the cloud. Many technologies such as Virtual Private Network (VPN) allow to its remote user to access internal resources for other external places. This kind of approach the application and other resources required a strong trust mechanisms.

The above discussion clearly says that in the cloud business model, if trust are broken down it create serious harm to the system. Many organizations design a restricted secure network in its location. But, if any user proof the validity and truth for the system then the provider network allow to user to connect to the network and give permission to access number of applications, services and other instances of the network. This can generates trust issue related to storage, computation and access to cloud instances, known as the malicious insider.

6.7.2 Human aspect

The generator of all problems, threats and issues are human. Human design and implement each application and services according to own requirements. The result from this human nature create some faulty result and serious harm in the system. In the cloud computing model, the data and information are travel from one location to another location. For this still required a defensive trust model. For organizational point of view the important thing is organizations trust on their employees. For completion of their duty employee access number of resources. But, in this approach organization can not filter human nature. In a data center number of assets is maintained by employee. The employee nature leads number of problems because they create an error or negligence. The user password is an important factor for care of user private data and services. But, due to heavy load most of the user trust on co-worker or friends and they share her/his password with them. Due to this trust approach if the password is open or disclose then the whole system security is broken. The social engineering is another issue in the trust model. The understanding of social engineering is change person to person. If a security expert gets phishing email, then based on their subjective knowledge and past experiences they can find phishing emails. But, a normal Internet user can not find phishing emails and he/she easily phished.

6.7.3 Reputation

The different cloud customer uses different VMs, but they are hosted by the same machine. Single hardware assets are shared among multiple users. Thus, different user activity and behavior can affect each other reputation. There is an issue known as reputation isolation and fate sharing. The cloud system may affect the user services and resources, if the cloud system is corrupted. Additionally, all malicious people get benefits from the services and resources. If any spammers or malicious activity disturbs the cloud system, the cloud provider have facility to block the activity. Many cloud customers suffer from the reputation isolation issue and faced different challenges, if they do not know about malicious activity.

(Video) How Cloud Computing Became a Big Tech Battleground | WSJ

6.7.4 Trust on the auditability reports

In the cloud environments, the virtualized guest OS allows to third party auditors perform a number of tests to find the health status of the assets. The auditability is hard cause of the cloud provider may not provide the complete information of their assets. The audit technique provides the complete information about service conditions, check all access and events, record and maintain logs, and monitor intrusions. The auditability makes easy to user or provider to identify the status of the service. The user and provider give this auditability responsibility to other trusted third party auditors. Suppose, a user trust on auditability reports and if the auditor compromised with the service provider, produce wrong reports. For the complete security of the service trust on the audit reports is not sufficient.

6.7.5 Anonymization

In the cloud infrastructure, it is required for the customers to trust on their service providers. The service provider security control devices record each activity and produce logs. Based on the trust user think the provider does not disclose these logs and logs cannot be compromised with other malicious user. But, if the logs are compromised or unclosed by the service provider. Then these logs can produce useful information to the other malicious user, such as the VM location of a particular user can produce various attacks on the VM. So, in the trust model require an additional layer of security.

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Review and analysis of networking challenges in cloud computing

Jose Moura, David Hutchison, in Journal of Network and Computer Applications, 2016

4.4 Cooperation, mobile cloud computing, network functions virtualization (NFV), inter-cloud computing architectures, and internet of things (IoT)

4.4.1 Cooperation in cloud computing

An obvious method for efficiently using the available cloud resources is to persuade cloud participants to cooperate among themselves. This cooperation can be enforced in several ways: through a common goal (Huerta-Canepa and Lee, 2010), using monetary incentives (Charilas et al., 2011), social incentives (Tanase and Cristea, 2011) or reputation incentives (Hwang et al., 2008; Charilas et al., 2011). The major problem associated with the common goal method (Huerta-Canepa and Lee, 2010) is that it does not work in the absence of a common activity among the potential collaborating entities. In the case of monetary incentive (Charilas et al., 2011), several issues need to be addressed to identify the most suitable cloud business model to be used (Sen and Soumya et al., 2013), and investigate more specific problems such as the credit representation; the security requirements to guarantee a safe monetary transaction; what price to use for each cloud resource; and what type of tariff should be selected (e.g. static, dynamic). Using social incentives such as those suggested in Tanase and Cristea (2011) also raises some problems such as preventing free riding. The main issues related with reputation mechanisms are the potential lack of fairness and trust associated with the reputation values. This aspect requires further investigation.

4.4.2 Mobile cloud computing and network functions virtualization

Mobile Cloud Computing (MCC) has become an important research area due to the rapid growth of mobile applications and the emergence of cloud computing (Wang et al., 2015). MCC refers to the integration of cloud computing into a mobile environment. The final goal of MCC is to deliver to users a set of mobile services with enhanced QoE. To reach this objective, the mobile operators are deploying an initial strategy that offloads traffic from cellular networks to other available wireless access technologies (e.g. Wifi, WAVE). Other techniques to enhance QoE are service migration and data caching. In this way, and starting with service migration, it can be implemented among federated clouds for offering users a set of services (eventually from distinct cloud providers) with the highest QoE to each user; this offer could be dependent on several requisites namely, the user location, the user profile, and the user terminal characteristics. In addition, the data caching should be deployed to diminish the Round Trip Time (RTT) and its variability (i.e. jitter); consequently, the data should be stored at devices (e.g. MiddleBoxes/Proxies, Access Points, Base Stations, Terminals) very near the user terminals that are expected to consume that data.

To orchestrate all the technologies, strategies and techniques discussed in the last paragraph, making MCC a powerful solution, it is fundamental to program the network and service resources in an intelligent and efficient way. An interesting approach to deliver all this is using Network Functions Virtualization (NFV). The NFV is an emerging network architecture concept that uses virtualization technologies to abstract from the hardware entire classes of network node functions into building blocks that may connect, or chain together, to create intelligent and efficient communication services. As an example, a programmable NFV may consist of one or more virtual machines running, in a coordinated way, different software and processes, on top of standard high-volume servers, switches and storage, or even CC infrastructure, instead of having custom and proprietary hardware appliances for each network function. This new NFV architecture is potentially very flexible; it can deploy virtualized load balancers, firewalls, intrusion detection devices, WAN accelerators, mobile devices power control (Mavromoustakis et al., 2015), and new MCC business models (Katzis, 2015).

The migration of NFV to the cloud environment seems a very challenging task for researchers and engineers due to the myriad of challenges that need to be managed in a harmonized way in order to deliver optimum seamless services to mobile users (Grover and Kheterpal, 2015). Many fundamental problems of mobile networks such as bandwidth availability and reliability, resource scarceness and finite battery energy need to be addressed before rolling out these types of services. To solve those problems, various types of resource management techniques should be deployed at mobile clouds such as resource offloading, cloud infrastructure, mobile devices power control (Mavromoustakis et al., 2015), control theory, data mining, machine learning, radio spectrum management and MCC business models (Katzis, 2015).

As a final interesting MCC scenario, the authors of (Batalla, 2015) elaborate on multimedia content delivery as one of the use cases of mobile cloud networks. These cloud networks are referred to as media clouds. Since mobile devices are becoming increasingly important receptors of multimedia content, mobile cloud computing is undertaking an important role for delivering audiovisual content from the cloud through the Internet towards the mobile users. On the other hand, high requirements of multimedia content streaming establish the necessity of cross layer mechanisms for avoiding or decreasing the effects of, for example, mobile network congestion or cloud congestion. In this way, one should make use of novel models and algorithms for resource usage prediction that makes possible the optimal distribution of streaming data, and for prediction of the upcoming fluctuations of the network that provide the ability to make the proper decisions in achieving optimized QoS) and QoE for the end users (Kryftis et al., 2015).

4.4.3 Inter-cloud computing architectures

“Storage as a Service” (SaaS) for Internet content delivery, video encoding, and streaming services (e.g. Content Delivery Networks – CDNs) has come to the fore, potentially using a federation of cloud infrastructures. In this context, it is pertinent for providers to hide the different ways in which they operate. One way of performing this transparency is providing a suitable abstraction across the infrastructure heterogeneity. This abstraction can be ensured by a metadata system such as MetaCDN (2014) and Akamai (2014).

It is also important to be aware of legal issues related to data movement and storage among disparate geographic locations. Notably, the physical locations of both virtual machines and storage arrays have a strong bearing on national laws in respect of security breaches or tampering with data, and in particular where data is moved between different locations (Voorsluys et al., 2011; SECCRIT, 2014). There are also important business issues that arise if or when a cloud provider changes owner or closes down, in respect of customer data and applications.

Also recently, research has been carried out in Service-Oriented Architectures (SOAs), especially from a convergence and network point of view (Duan et al., 2012). Some relevant aspects of this research will involve several areas, namely network virtualization (Chowdhury et al., 2010; Jain and Paul, 2013) over heterogeneous network infrastructures (e.g. wireless backhaul links, unidirectional optical links) (Tzanakaki et al., 2013), service discovery technologies (Rambold et al., 2009), QoS-aware web service composition (Strunk, 2010), and network applications based on SDN through a multi-cloud environment (Jain and Paul, 2013). SDN has been its main focus in the context of data centers and support of virtualized networks. Consequently, the application of the same approach to wide area networking is still yet to prove its viability. One such application is in supporting lambda path networks, where the elements of the network are not packet switches but wavelength switches (Wei et al., 2014).

A very recent IETF discussion about inter-cloud computing architectures is available in (Aazam et al., 2015).

4.4.4 Internet of things

The ubiquitous network connectivity, affordable computing power combined with intelligent deployments make the Internet of Things (IoT) very valuable for the current Internet players. The convergence of network wireless access technologies, cloud, and APIs to analyze the data (Big Data) is creating an opportunity for independent software vendors, system integrators, and researchers. Some new solutions are being developed. These solutions are based on new programming models and hardware devices. These can be deployed through very popular languages such as PHP, Python, Java, JavaScript, C#, and Ruby; microcontrollers and low-powered devices such as Arduino, Raspberry Pi, and other embedded devices. The usage scenarios of IoT are diverse and include e-Health, engineering, transportation, and social, to name just a few.

To migrate and operate the IoT devices in the cloud, some obstacles should be overcome; the first challenge is that to realize the true potential of IoT, the data generated by sensors has to be analyzed in real-time; a second challenge is to perform a very useful historical data analysis over structured or even unstructured information previously collected from sensors.

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(Video) Cloud Operating Models for Accelerated Transformation - Level 200 (United States)


What is cloud business model? ›

Cloud isn't a technology — it's a new business model powered by new technologies. Cloud sells IT infrastructure, platforms and applications as services. Its on-demand, “pay as you go” model reduces the time, money and people it takes to build and deploy infrastructure and applications.

What is cloud overview? ›

Cloud computing is the delivery of computing resources — including storage, processing power, databases, networking, analytics, artificial intelligence, and software applications — over the internet (the cloud).

What are the five business models used for cloud providers? ›

Cloud Service Models
  • Infrastructure as a Service (IaaS)
  • Platform as a Service (PaaS)
  • Software as a Service (SaaS)

What are the 3 main types models in cloud computing? ›

There are also three main types of cloud computing services: Infrastructure-as-a-Service (IaaS), Platforms-as-a-Service (PaaS), and Software-as-a-Service (SaaS).

Which business model uses cloud computing? ›

There are also service delivery models in Cloud Computing which are Software as a Service (SaaS), Platform as a Service (PaaS) and Infrastructure as a Service (IaaS) [4] . In the SaaS model, users may gain access to applications running on the cloud only through various client interfaces, such as a web browser. ...

Why do we need cloud operating model? ›

Purpose of a cloud operating model

When you remove hardware from the unit of operations, you shift focus to digital assets and the workloads they support. As such, the purpose of the operating models shifts from keeping the lights on to ensuring consistent operations.

What are the 5 essential characteristics of cloud computing? ›

Five characteristics of cloud computing
  • On-demand self-service. Cloud computing resources can be provisioned without human interaction from the service provider. ...
  • Broad network access. ...
  • Multi-tenancy and resource pooling. ...
  • Rapid elasticity and scalability. ...
  • Measured service.
11 Aug 2017

What is vision of cloud computing? ›

The long term vision of a cloud computing is that IT services are traded as utilities in an open market without technological and legal barriers.

What are the four cloud deployment models? ›

There are four cloud deployment models: public, private, community, and hybrid. Each deployment model is defined according to where the infrastructure for the environment is located.

What are the cloud models? ›

Cloud computing services come mainly in three types of service models: SaaS (Software as a Service), IaaS (Infrastructure as a Service), and PaaS (Platform as a Service). Each of the cloud models has its own set of benefits that could serve the needs of various businesses.

What are the benefits of cloud computing? ›

Benefits of cloud computing
  • Reduced IT costs. Moving to cloud computing may reduce the cost of managing and maintaining your IT systems. ...
  • Scalability. ...
  • Business continuity. ...
  • Collaboration efficiency. ...
  • Flexibility of work practices. ...
  • Access to automatic updates. ...
  • Also consider...
11 May 2022

Who are the major players in the cloud? ›

It can efficiently manage and secure Windows workloads.
  • Microsoft Azure. Microsoft Azure is also known as Windows Azure. ...
  • Google Cloud Platform. Google cloud platform is a product of Google. ...
  • IBM Cloud Services. ...
  • VMware Cloud. ...
  • Oracle cloud. ...
  • Red Hat. ...
  • DigitalOcean. ...
  • Rackspace.

What are the 3 basic components of cloud computing? ›

These services are divided into three main categories or types of cloud computing: infrastructure as a service (IaaS), platform as a service (PaaS) and software as a service (SaaS).

Who is the father of cloud computing? ›

Who is the father of cloud computing technology? The answer to this trivia night question is American computer scientist J.C.R. Licklider. In the late 1960s, he envisioned a world where everyone would be connected with the ability to access specific programs and data regardless of where the access point was located.

Who uses cloud computing? ›

Who is using cloud computing? Organizations of every type, size, and industry are using the cloud for a wide variety of use cases, such as data backup, disaster recovery, email, virtual desktops, software development and testing, big data analytics, and customer-facing web applications.

What are the cloud services? ›

Cloud services are infrastructure, platforms, or software that are hosted by third-party providers and made available to users through the internet.

What is cloud delivery model? ›

A cloud delivery model represents a specific, pre-packaged combination of IT resources offered by a cloud provider. Three common cloud delivery models have become widely established and formalized: Infrastructure-as-a-Service (IaaS) Platform-as-a-Service (PaaS) Software-as-a-Service (SaaS)

How do you start a cloud business? ›

Developing A Cloud Strategy For Traditional/On-Premise Business
  1. Step 1: Lift and shift/rehost. ...
  2. Step 2: Iterate rapidly. ...
  3. Step 3: Adopt a philosophy of elasticity and flexibility. ...
  4. Identify your goals for moving to the cloud. ...
  5. Keep cost in mind.

How do you build a cloud team? ›

  1. Step 1: Determine whether a cloud operations team is needed. ...
  2. Step 2: Align with other teams. ...
  3. Step 3: Establish a cadence with other teams. ...
  4. Step 4: Review the methodology. ...
  5. Step 5: Implement the operations baseline. ...
  6. Step 6: Align business commitments. ...
  7. Step 7: Operations maturity.
6 Jul 2022

What is cloud-first strategy? ›

What is a cloud-first strategy? With a cloud strategy, companies shift most of their infrastructure to a cloud computing platform, like Microsoft Azure or Google Cloud. Software gets built directly in the cloud, reducing overhead.

What are the 6 cloud computing? ›

Infrastructure-as-a-Service (IaaS); Platform-as-a-Service (PaaS); Software-as-a-Service (SaaS); Business-Process-as-a-Service (BPaaS).

What is cloud computing introduction? ›

Cloud Computing refers to manipulating, configuring, and accessing the hardware and software resources remotely. It offers online data storage, infrastructure, and application. Cloud computing offers platform independency, as the software is not required to be installed locally on the PC.

What is big data in cloud computing? ›

Essentially, “Big Data” refers to the large sets of data collected, while “Cloud Computing” refers to the mechanism that remotely takes this data in and performs any operations specified on that data.

What are the driving factors of cloud computing? ›

8 Factors Driving Cloud Adoption in the Financial Sector
  • Need for Agility and Flexibility. ...
  • Transition towards OpEx Models. ...
  • Need for Real-Time Information. ...
  • Massive and Steadily Increasing Data Storage Requirements. ...
  • Changing Customer Behaviour. ...
  • New Kinds of Services. ...
  • Security and Compliance. ...
  • Green IT.
16 Nov 2020

What is the best cloud deployment model? ›

The public cloud deployment model is the most popular one. In a public cloud deployment model, you do not own any hardware, since all the resources are provided by the cloud service provider.

What is the most basic cloud service model? ›

1. Software as a Service(SaaS) SaaS is the most well-known of the three cloud service delivery models.

What are the components of cloud? ›

Each of the four components of cloud infrastructure plays a role in helping organizations successfully deploy and deliver applications and other services: network, servers, storage, virtualization.

Which is not type of cloud model? ›

The correct answer to the question “Which of the following is not a type of cloud” is option (c). Protected. And all the other options denote a type of cloud, Private Cloud, Public Cloud, and Hybrid Cloud.

How cloud computing is used in business? ›

The 'cloud' refers to the internet, and operating 'in the cloud' describes the way you store and access your data through an internet connection. Cloud computing allows businesses to access their information virtually, creating a flexible and global way of accessing your data any place, any time.

What are the disadvantages of cloud? ›

Disadvantages of cloud computing
  • data loss or theft.
  • data leakage.
  • account or service hijacking.
  • insecure interfaces and APIs.
  • denial of service attacks.
  • technology vulnerabilities, especially on shared environments.

What are pros and cons of cloud computing? ›

A list of advantages and disadvantages of cloud computing:
Advantages of CloudDisadvantages of Cloud
No administrative or management hasslesLimited control of infrastructure
Easy accessibilityRestricted or limited flexibility
Pay per useOngoing costs
5 more rows
8 Jul 2016

Who are the big 3 cloud providers? ›

Which Cloud Service Provider Has the Largest Market Share? Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP) are the cloud service providers with the largest market share, collectively capturing over 65% of spending on cloud infrastructure services.

Which cloud has highest demand? ›

Conclusion. Today, Amazon Web Services is leading the public cloud market and is continuing to grow. At the same time, Microsoft Azure and Google Cloud Platform are also progressing to gain market share. Many companies which have already finished moving to the cloud are now considering a multi-platform approach.

Which cloud is used most? ›

AWS Cloud is one of the most used cloud computing services. Amazon Web Services is a cloud service provider that can be used independently. Also, AWS can be used together for a broader experience.

How does Google Cloud make money? ›

Alphabet leverages its search, web browsing, mobile operating systems, and cloud computing to make money through the sale of advertising and various service fees. Advertising generates the majority of revenue, but Google Cloud revenues are growing rapidly.

What is SaaS in cloud computing? ›

Software as a service (or SaaS) is a way of delivering applications over the Internet—as a service. Instead of installing and maintaining software, you simply access it via the Internet, freeing yourself from complex software and hardware management.

Who are the major players in the cloud? ›

It can efficiently manage and secure Windows workloads.
  • Microsoft Azure. Microsoft Azure is also known as Windows Azure. ...
  • Google Cloud Platform. Google cloud platform is a product of Google. ...
  • IBM Cloud Services. ...
  • VMware Cloud. ...
  • Oracle cloud. ...
  • Red Hat. ...
  • DigitalOcean. ...
  • Rackspace.

What is a service based business model? ›

The 'As a service' business model is an emerging business model that shifts the customer - supplier relationship from the traditional model of ownership to a model that evolves around providing a service on a non-ownership basis.

Why has Google Cloud lost? ›

However, Google Cloud continues to face losses, as it faces stiff competition from the likes of Microsoft, AWS, and Oracle. For the second quarter, Google Cloud reported an operating loss of $858 million, likely driven by infrastructure investments.

Why Google Cloud is better than AWS? ›

Google Cloud vs AWS: Global reach

While Google Cloud Platform beats AWS on price and flexibility, AWS scores better in terms of global reach, providing significantly more data centers around the world. As of September 2020, Google Cloud Platform had 24 regions, 73 zones, and over 100 points of presence in 35 countries.

Is Google losing money on cloud? ›

Despite gains, the company's cloud service is not yet profitable. During Q2, Google Cloud ran an operating loss of $858 million, exceeding the $591 million loss in Q2 2021, according to the report. Google Cloud saw “continued demand in all geographies,” said Alphabet CEO Sundar Pichai.

Is Amazon a SaaS? ›

AWS (Amazon Web Services) is a comprehensive, evolving cloud computing platform provided by Amazon that includes a mixture of infrastructure as a service (IaaS), platform as a service (PaaS) and packaged software as a service (SaaS) offerings.

Is Netflix a SaaS company? ›

Netflix is one of the most popular SaaS companies. One of the reasons they're so successful in such a competitive field is their low churn rate. The customer churn rate is the percentage of customers that cancel or stop using a service.

Is Gmail a SaaS? ›

Gmail is one famous example of an SaaS mail provider. PaaS: Platform as a Service The most complex of the three, cloud platform services or “Platform as a Service” (PaaS) deliver computational resources through a platform.

Who are the big 3 cloud providers? ›

Which Cloud Service Provider Has the Largest Market Share? Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP) are the cloud service providers with the largest market share, collectively capturing over 65% of spending on cloud infrastructure services.

Which cloud has highest demand? ›

Conclusion. Today, Amazon Web Services is leading the public cloud market and is continuing to grow. At the same time, Microsoft Azure and Google Cloud Platform are also progressing to gain market share. Many companies which have already finished moving to the cloud are now considering a multi-platform approach.

Which cloud is used most? ›

AWS Cloud is one of the most used cloud computing services. Amazon Web Services is a cloud service provider that can be used independently. Also, AWS can be used together for a broader experience.

What are the 7 business models? ›

There are seven business models for small businesses to consider.
  • BUSINESS MODEL 1: The manufacturer. ...
  • BUSINESS MODEL 2: Bricks and clicks. ...
  • BUSINESS MODEL 3: Advertising. ...
  • BUSINESS MODEL 4: The marketplace. ...
  • BUSINESS MODEL 5: Subscription. ...
  • BUSINESS MODEL 6: Direct sales. ...
  • BUSINESS MODEL 7: On-demand.
22 Apr 2019

How many types of business models are there? ›

Here are 12 common business model options, all of which can be customized for a specific company or industry.
Types of business models and examples
  • Retailer model. ...
  • Manufacturer model. ...
  • Fee-for-service model. ...
  • Subscription model. ...
  • Bundling model. ...
  • Product-as-a-service model. ...
  • Leasing model.
14 Jul 2022


1. Cloud 101: An Introduction to Cloud Computing | AWS Public Sector
(AWS Public Sector)
2. What is the cloud operating model and how can organizations adopt it?
3. Cloud Computing Introduction - Part 2
(Javeed Mehdi Tech Classes)
4. Cloud Services Explained - tutorial for beginners
(Lucid Software)
5. The Business Model Canvas - 9 Steps to Creating a Successful Business Model - Startup Tips
(The Business Channel)
6. The Explainer: What is a Business Model?
(Harvard Business Review)

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