1. Hugo Aquino – Cloud Computing for Enterprises
Final Project
Presentation
Course: USMx: CC605x
Cloud Computing for Enterprises

2. Final Project
Agenda
• Executive Summary
• Description of Cloud Computing
• Basic Capabilities of the Cloud
• Advantages and Disadvantages of Cloud Computing
• Our scenario
• Analysis of Economic Implications
• IT Business Need
• SWOT Analysis
• Conclusion
Cloud Computing for Enterprises

3. Final Project
Executive Summary
• Our organization has been experiencing high growth based on the adequate
commercial and marketing strategy, so our NPS (Net Promoter Score) has increased,
which is a good sympton about an adequate service delivered to our customers.
• The technology must be an enabler for the business, and if the organization needs to
continue growing, we have detected a high risk (financial, operational and
reputational) on our internal data centers, that are running at full capacity.
• We have two possibilities, one is to increase the capacity of an internal data center
that implies CAPEX investment to expand infrastructure that will imply a prolonged
time-to-market. The other possibility is to use a technology known as “Cloud
Computing” that is based on a pay-as-you-go billing model (variable OPEX) with
interesting functionalities such as scalability, flexibility and security that combined
can generate value to our customers.
• Definitively that our organization can continue improving its profitability by reducing
IT infrastructure costs if we decide to migrate workloads to cloud computing.
Cloud Computing for Enterprises

4. Final Project
Description of Cloud Computing
• Cloud Computing is a model to have access to resources
(servers, databases, networking, applications, services)
through an Internet/MPLS connectivity, that is billed based
on the resources being used (pay-as-you-go).
Cloud Computing for Enterprises

5. Final Project
Basic Capabilities of the Cloud
Cloud Computing for Enterprises

6. Final Project
Basic Capabilities of the Cloud
Cloud Computing for Enterprises
Public
•A cloud provider (AWS,
Azure, GCP) has services
available for consumption by
the general public.
Private
•An internal department (typically
called IT) has services available for
consumption by other organizations
within a larger organization.
•OpenStack, Apache Cloud Stack are
examples of.
Hybrid
•An organization uses both public
and private cloud solutions and
implements management
frameworks to enable workload
interoperability.

7. Final Project
Basic Capabilities of the Cloud
Cloud Computing for Enterprises
Cloud Service Delivery Models

8. Final Project
Advantages and Disadvantages of Cloud Computing
Cloud Computing for Enterprises
Advantages
• Scalable
• Flexible
• Elasticity
• Cost saving
• Reduce time-to-market
• Security
• Unlimited storage capacity
Disadvantages
• Lose control
• Service disruptions
• Privacy
• Depends on internet
connectivity
• Hybrid security model
• Stored data might no be
secure

9. Final Project
Current IT infrastructure scenario
Category Item Amount Specifications
Computing
Non-DB
Server
200
Cores: 8
RAM: 64 GB
OS: Linux
Database
DB
Server
10
Cores: 16
RAM: 128 GB
DB: Oracle SE
10
Cores: 16
RAM: 128 GB
DB: MySQL
Storage
Object 200 TB
25% infrequently
accessed
NAS 500 TB NA
SAN 1000 TB NA
Cloud Computing for Enterprises

10. Final Project
IT current scenario – AWS: TCO calculator
For DB Oracle, we´ll asume the use of
our perpetual on-premises licenses
For Hypervisor, we´ll
asume the use of VMware
Cloud Computing for Enterprises

11. Final Project
Analysis of Economic Implications
Category
On-Premises
Virtual environment
Cloud Computing with AWS
Item Value Percentage Item Value Percentage
Time period Years 3 NA Years 3 NA
Compute
Hardware $ 2,248,889
61.68%
EC2 instace costs
(reserved)
$ 2,149,716
48.14%Software $ 1,903,530 Database software license cost $ 144,420
Operating costs $ 997,344 CloudWatch $ 360
sub-total $ 5,149,763 sub-total $ 2,294,496
Storage
Raw capacity
(including IOPS)
$ 1,904,640
32.84%
EBS costs $ 907,663
44.92%
Backup $ 524,400 AWS Business Support (EBS) $ 60,713
Overhead
(excluding storage admin)
$ 260,123 EFS costs $ 1,057,536
Storage admin $ 52,473 AWS Business Support (EFS) $ 75,808
NA NA S3 costs $ 31,467
NA NA AWS Business Support (S3) $ 2,105
NA NA
Standard -
Infrequent access costs
$ 5,724
NA NA
AWS Business Support
(Standard - Infrequent Access)
$ 383
sub-total $ 2,741,636 sub-total $ 2,141,399
Network
Hardware and Software $ 326,089
4.62%
Data transfer costs $ 36,559
0.77%Bandwidth costs $ 60,000
sub-total $ 386,089 sub-total $ 36,559
IT Labor
IT Admin costs
(VMs/servers)
$ 35,640
0.85%
EC2 Admin costs $ 19,440
6.17%IT DBA labor costs $ 35,640 RDS Admin costs $ 16,200
NA NA AWS Support (Business) $ 258,565
sub-total $ 71,280 sub-total $ 294,205
Total Total $ 8,348,768 100.00% Total $ 4,766,659 100.00%

12. Final Project
Analysis of Economic Implications
Cloud Computing for Enterprises
• Cloud computing:
• Analysis #1 -
Reserved instances
compute model is
3.5M USD cheaper
than On-Premises
with a 14 months
payback period.
• Analysis # 2 – On-
demand instances
compute model is
330K USD more
expensive than On-
premise.
• The AWS EC2 reserved
instances model is the
only cloud model that
generates savings.
Financial Analysis
Scenario Category Item Year 1 Year 2 Year 3
Cloud
Computing
alternative
One-time
expenses
Compute
(reserved instances)
$ 2,149,716 $ - $ -
Recurring
expenses
Database software
license
$ 48,140 $ 48,140 $ 48,140
Cloud Watch $ 120 $ 120 $ 120
Storage $ 713,800 $ 713,800 $ 713,800
Data Transfers $ 12,186 $ 12,186 $ 12,186
IT Labor $ 98,068 $ 98,068 $ 98,068
Total
costs
By year $ 3,022,030 $ 872,314 $ 872,314
Total $ 4,766,659
TCO/year $ 1,588,886
Benefits On-premise
Compute $ 1,716,588 $ 1,716,588 $ 1,716,588
Storage $ 913,879 $ 913,879 $ 913,879
Network $ 128,696 $ 128,696 $ 128,696
IT Labor $ 23,760 $ 23,760 $ 23,760
sub-total $ 2,782,923 $ 2,782,923 $ 2,782,923
Total $ 8,348,768
Cashflow
Net cashflow -$ 239,108 $ 1,910,608 $ 1,910,608
Cumulate Net cashflow -$ 239,108 $ 1,671,501 $ 3,582,109
Payback
Full years where
cumulate cash flow is negative
1
Absolute value of the last
cumulate cash flow negative
$ 239,108
Next cash flow value $ 1,671,501
Period (years) 1.14
IRR 788.95%

13. Final Project
IT Business Need
Cloud Computing for Enterprises
• Our organization has to continue growing in the medium and long term, generating
profitability in a highly competitive environment by keeping costs as low as possible.
• The technology plays an important role because is the business enabler, and if we
find a way to support the growth without taking care of the infrastructure that is
needed to be acquired (CAPEX) with a flexible service provision schema (auto-scaling
based on thresholds exceeded), join with an availability distributed in several regions,
and most important by paying only for what we are using (variable OPEX), definitely
that Cloud Computing is the way to go.
• On Cloud Computing, there are several players, such as: Amazon Web Services (AWS),
Microsoft Azure, Google Cloud Platform (GCP), etc., and according to Gartner,´s
Magic Quadrant (July 2019), AWS has been the leader by 9 consecutive years being
the option that we are recommending because its position as market leader.
• Therefore, if we migrate our current infrastructure that runs On-Premises to the AWS
Cloud Computing by using a model of reserved instances, this action will bring us
benefits in a 3 years TCO analysis. The On-Premises TCO is 8.35M USD, while the
Cloud computing TCO is 4.77M USD with a payback period of 14 months.

14. Final Project
SWOT Analysis
Strengths Weaknesses
• Data sharing
• Scalable storage space
• Enhance availability of data and services
• Development of OS-independent applications
• Improved performance of services
• Reliability of data and services
• Pay-per usage
• Flexible and resilient in disaster recovery
• SLA guarantees the services from the cloud
service providers (CSP) to client
• Interoperability (communications between the
cloud)
• Open standards
• No precise method to select/find CSP
• Paradigm swing at present occupational and IT
departments
• No easy Migration to another CSP
• High-speed Internet/MPLS connection essential
to connect to cloud
• Modification on maintenance model
Opportunities Threats
• Overcoming latency limitations
• Improving bandwidth utilization
• Dynamic network monitoring
• Technical issues resolution
• Adaptive to future needs
• Cloud provides an excellent back-end for mobile
applications
• Expansion and growth
• Security issues (privacy, authentication, malware,
confidenciality, third party, data integrity, los of
data)
• Management of data
• Data ownership
• Migration from one CSP to another is difficult
• Vendor shutdown
• Natural calamities
Cloud Computing for Enterprises

15. Final Project
Conclusion
• Cloud computing is an interesting alternative that enables:
reduced time-to-market, scalability, and a way to drive agility
and innovation.
• Cloud computing can generate savings after an adequate
components/services analysis done.
• A new mindset is needed inside IT to accelerate the Cloud
computing adoption, because on Cloud, the roles, and tasks are
integrated in comparison to On-Premise.
• Not all the applications can be migrated to Cloud computing, a
checklist has to be applied to evaluate the technical feasibility
with the functional and non-functional requirements in mind.
Cloud Computing for Enterprises

16. Final Project
Thanks
Cloud Computing for Enterprises